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IRS.gov Website
Publication 225
taxmap/pubs/p225-062.htm#en_us_publink1000218839

Federal Unemployment 
(FUTA) Tax(p80)

rule
You must pay FUTA tax if you meet either of the following tests. These rules do not apply to exempt services of your spouse, your parents, or your children under age 21. See Family Employees, earlier.
taxmap/pubs/p225-062.htm#en_us_publink1000218840

Alien farmworkers.(p80)

rule
Wages paid to aliens admitted on a temporary basis to the United States to perform farmwork (also known as "H-2(A) visa workers") are exempt from FUTA tax. However, include your employment of these workers and the wages you paid them to determine whether you meet either test above.
taxmap/pubs/p225-062.htm#en_us_publink1000218841

Commodity wages.(p80)

rule
Payments in kind for farm labor are not cash wages. Do not count them to figure whether you are subject to FUTA tax or to figure how much tax you owe.
taxmap/pubs/p225-062.htm#en_us_publink1000218842

Tax rate and credit.(p80)

rule
The gross FUTA tax is 6.2% of the first $7,000 cash wages you pay to each employee. However, you are given a credit of up to 5.4% for the state unemployment tax you pay. The net tax rate, therefore, can be as low as 0.8% (6.2% − 5.4%). If your state tax rate (experience rate) is less than 5.4%, you may still be allowed the full 5.4% credit.
If you do not pay the state tax, you cannot take the credit. If you are exempt from state unemployment tax for any reason, the full 6.2% rate applies. See the Instructions for Form 940 for additional information.
taxmap/pubs/p225-062.htm#en_us_publink1000218843

More information.(p80)

rule
For more information on FUTA tax, see Publication 51 (Circular A).
taxmap/pubs/p225-062.htm#en_us_publink1000218844

Reporting and Paying 
FUTA Tax(p80)

rule
The FUTA tax is imposed on you as the employer. It must not be collected or deducted from the wages of your employees.
taxmap/pubs/p225-062.htm#en_us_publink1000218845

Form 940.(p80)

rule
Report FUTA tax on Form 940. The 2010 Form 940 is due January 31, 2011 (or February 10, 2011, if you timely deposited the full amount of your 2010 FUTA tax).
taxmap/pubs/p225-062.htm#en_us_publink1000218846

Deposits.(p80)

rule
If at the end of any calendar quarter you owe, but have not yet deposited, more than $500 in FUTA tax for the year, you must make a deposit by the end of the following month. If the undeposited tax is $500 or less at the end of a quarter, you do not have to deposit it. You can add it to the tax for the next quarter. If the total undeposited tax is more than $500 at the end of the next quarter, a deposit will be required. If the total undeposited tax at the end of the 4th quarter is $500 or less, you can either make a deposit or pay it with your return by the January 31, 2011, due date.
taxmap/pubs/p225-062.htm#en_us_publink1000218847
Electronic deposit requirement.(p80)
The IRS has issued proposed regulations under section 6302 which provide that beginning January 1, 2011, you must deposit all depository taxes (such as employment tax, excise tax, and corporate income tax) electronically using the Electronic Federal Tax Payment System (EFTPS). Under these proposed regulations, which are expected to be finalized by December 31, 2010, Forms 8109 and 8109-B, Federal Tax Deposit Coupon, cannot be used after December 31, 2010. For more information about EFTPS or to enroll in EFTPS, visit the EFTPS website at www.eftps.gov or call 1-800-555-4477. You can also get Pub. 966, The Secure Way to Pay Your Federal Taxes.