Federal Unemployment Tax Act - FUTA

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Dictionary Says

Definition of 'Federal Unemployment Tax Act - FUTA'

The original legislation that allows the federal government to tax businesses with employees for the purpose of collecting revenue that is then allocated to state unemployment agencies and paid to unemployed workers who are eligible to claim unemployment insurance. The Federal Unemployment Tax Act requires employers to file IRS Form 940 annually in conjunction with paying this tax.
Investopedia Says

Investopedia explains 'Federal Unemployment Tax Act - FUTA'

The amount of an employer's FUTA tax liability determines when the tax must be paid; the form for reporting the tax is due in the first quarter of the year. As of Jul. 1, 2011, the FUTA tax rate was 6% of the first $7,000 paid to each employee annually. This means that if a company had 10 employees who each earned wages of at least $7,000 for the year, the company's annual FUTA tax would be 0.06 x $70,000 = $4,200. Only employers, not employees, pay the FUTA tax. Many states collect an additional unemployment tax from employers.
Search results for

'Federal Unemployment Tax Act (FUTA) '

  • Small Business Tax Obligations: Payroll Taxes

    http://www.investopedia.com/articles/taxes/08/business-payroll-tax.asp
    ... Other withholding obligations include FUTA (Federal Unemployment Tax Act) and, in
    states such as California, Hawaii, New Jersey, New York and Rhode Island ...

  • Are the deferred earnings in a SIMPLE IRA subject to FICA taxes?

    http://www.investopedia.com/ask/answers/06/SIMPLEtax.asp
    ... they are subject to tax under the Federal Insurance Contributions Act (FICA), the
    Federal Unemployment Tax Act (FUTA) and the Railroad Retirement Act (RRTA). ...

  • The History Of The Continuing Claims Report

    http://www.investopedia.com/articles/economics/10/continuing-claims.asp
    ... The federal government has been collecting data about ... since the Social Security Act
    was originally ... small tax called the future unemployment tax allowance (FUTA ...

  • Changes In Tax Legislation And Regulation

    http://www.investopedia.com/articles/05/taxlawchange.asp
    ... Fair Market Value The American Jobs Creation Act of 2004 ... series, including Form 940
    Employer's Annual Federal Unemployment Tax Return (FUTA); Form 941 ...

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