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The Federal Unemployment Tax Act (FUTA) requires employers to pay a tax of 6% on the first ,000 of salary or wages paid to each employee during the year.This FUTA tax is deposited with the IRS throughout the year.

States use a variety of complicated formulas to calculate each employer’s unemployment rate.This means the maximum FUTA liability for many businesses is per employee (,000 x 0.6% = ).It doesn’t matter what your state tax rate is ― the federal tax credit is the same.Employers pay federal unemployment tax if they meet one of two tests.

The first test measures the amount of wages paid during the current calendar year and the previous year.The deadlines for filing Form 940 with the IRS by year are: If keeping track of federal 940 due dates and calculating federal unemployment tax is too confusing and stressful, try using ADP to run your payroll and calculate and file local, state, and federal taxes automatically — including FUTA.


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