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The FUTA tax levies a federal tax on employers covered by a states UI program. The standard FUTA tax rate is 6.0% on the first $7,000 of wages subject to FUTA. The funds from the FUTA tax create the Federal Unemployment Trust Fund, administered by the United States Department of Labor (DOL).
How To Calculate FUTA Tax Liability Calculate the total wages paid to all employees for the previous quarter. For each employee, multiply the current FUTA tax rate (6.0% for 2023) by the amount of wages paid to the employee, up to a maximum of $7,000 annually.
If everyone at your company earns more than $7,000 per year, the basic equation for determining FUTA tax is as follows: $7,000 x 0.06 x Number of employees = FUTA tax liability. $7,000 x 0.06 x 20 = $8,400. Heres how to calculate your FUTA taxes if you have a mixture of employees making above and $7,000 a year:
More In File Mail return without payment Mail return with payment Department of the Treasury Internal Revenue Service Ogden, UT 84201-0046 Internal Revenue Service P.O. Box 932000 Louisville, KY 40293-20004 more rows Jul 25, 2024
To figure your estimated tax, you must figure your expected adjusted gross income, taxable income, taxes, deductions, and credits for the year. When figuring your estimated tax for the current year, it may be helpful to use your income, deductions, and credits for the prior year as a starting point.
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Use Form 940 to report your annual Federal Unemployment Tax Act (FUTA) tax. Together with state unemployment tax systems, the FUTA tax provides funds for paying unemployment compensation to workers who have lost their jobs. Most employers pay both a federal and a state unemployment tax. Only employers pay FUTA tax.
Tax Information Generally, federal law provides employers with a 5.4 percent FUTA tax credit toward the 6.0 percent regular tax when they file their federal Employers Annual Federal Unemployment (FUTA) Tax Return (Form 940).
The due date for filing Form 940 for 2024 is January 31, 2025. However, if you deposited all your FUTA tax when it was due, you may file Form 940 by February 10, 2025.

940 pr 2022