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Tax Deduction Consulting: FUTA Payroll Tax Deduction Bismarck ND

The Federal Unemployment Tax Act (FUTA) provides the funds for State workers services and unemployment services. This system provides the funds used for unemployment benefits. The tax is paid by employers. It is not actually a deduction from the employee's paycheck nor are they responsible for it. Employers are responsible for this tax if they either pay a total of $1500 in wages in any given quarter of the year or if they have an employee working at least one day of the week during any 20 weeks of the year. The weeks do not have to be consecutive.

H&R Block
(701) 250-0960
2717 ROCK ISLAND PL
BISMARCK, ND

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Liberty Tax Service
(866) 871-1040
1173 3rd Ave W # 19
Dickinson, ND

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H&R Block
(701) 746-5963
2551 32ND AVE S
GRAND FORKS, ND

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Liberty Tax Service
(866) 871-1040
3005 13th Ave S
Fargo, ND

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Petrick & Youngs Tax Svc Inc
(701) 852-6274
624 31st Ave SW
Minot, ND

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Liberty Tax Service
(866) 871-1040
500 W Main St
Mandan, ND

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Liberty Tax Service
(866) 871-1040
720 S Washington St
Grand Forks, ND

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Liberty Tax Service
(866) 871-1040
118 14th St W
Williston, ND

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H&R Block
(701) 241-7628
1531 S UNIVERSITY dr
FARGO, ND

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Accounting 4 Success
(701) 371-0419
3320 Westrac Drive
Fargo, ND
 
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Tax Deduction Consulting: FUTA Payroll Tax Deduction

FUTA Payroll Tax Deduction

The Unemployment system is funded jointly by Federal and State funds collected through payroll taxes. The FUTA payroll tax deduction provides these funds.

The Federal Unemployment Tax Act (FUTA) provides the funds for State workers services and unemployment services. This system provides the funds used for unemployment benefits. The tax is paid by employers. It is not actually a deduction from the employee's paycheck nor are they responsible for it. Employers are responsible for this tax if they either pay a total of $1500 in wages in any given quarter of the year or if they have an employee working at least one day of the week during any 20 weeks of the year. The weeks do not have to be consecutive.

The tax amounts to 6.2% of the first $7000 of income. However, the employer receives a credit against any State unemployment tax. The credit is 5.4% and the employer is eligible for it regardless of the State tax rate as long as they file and pay the tax in a timely manner. After the credit, the actual rate is reduced to 0.8%. Since only the first $7000 is taxed, the maximum amount paid for any single employee is only $56 per year.

The FUTA payroll tax is required for agricultural and domestic workers also, but they are under slightly different rules. Agricultural employers must pay the tax if they either pay at least $20,000 in wages in any given calendar quarter or if they have at least 10 workers on any single day of the week in a total of 20 weeks during the year. They do not have to be the same workers, nor do the weeks have to be consecutive, nor do the workers all have to be working at the same time.

Domestic employees include maids, housekeepers, gardeners, and babysitters employed in a home. The employer must pay FUTA taxes for them if their pay totals at least $1000 in any quarter of the year. For both agricultural and domestic workers, the tax rate is the same at 6.2% with a credit of 5.4%. The maximum tax due for any ...

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