What is the maximum coverage per employee under FAR for employer’s maintenance taxes?

The correct answer, which indicates a maximum coverage of $7,000 per employee under FAR (Federal Acquisition Regulation) for employer's maintenance taxes, refers to the specific limits set for certain employee benefits and associated taxes. This limit typically relates to unemployment insurance taxes. In many jurisdictions, employers are required to pay payroll taxes on a capped amount of wages for each employee.

The choice of $7,000 aligns with common thresholds established by various state and federal laws regarding unemployment insurance. As these rules are intended to provide a balance between protecting employees' rights to unemployment benefits and limiting the burden on employers, $7,000 has become a standard figure in multiple contexts.

Understanding this figure enables contractors to properly calculate their tax liabilities and ensure compliance with federal regulations, ultimately aiding in more efficient financial planning. In contrast, the other provided options do not reflect the commonly accepted limits for such taxes under the FAR.