Looking Towards Federal Unemployment Tax Rates in 2011
The Unemployment Federal Taxes
(FUTA) Federal Unemployment Tax Act is a tax. Employers pay this tax and the money goes into a fund to cover benefits if an employee should lose his or her job through involuntary causes.
Employers report and pay this tax to the IRS and in some cases they must pay in quarterly installments. The form for filing FUTA tax is Form 940.During periods of high unemployment the states may borrow from the fund to pay for the unemployment benefits the workers have earned.
As an employer, you have specific payroll responsibilities that are required by government agencies. These agencies can be federal, state or local. Some of these responsibilities include, but are not limited to, withholding amounts from your employees’ compensation to cover income tax, social security, Medicare, and other payments.
More on the state unemployment tax rates
