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Tax Deduction Consulting: FUTA Payroll Tax Deduction Butte MT

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.

John Shellenberger
P.O Box 4758
Bozeman, MT
Company
Company: Estate Conservation Associates
Education
Franklin & Marshall College A.B.
Stanford University M.A.
Years Experience
Years Experience: 34
Service
Supplemental Medicare Insurance,College Planning,401k Rollover From Employer,Income for Life/ Preserve Principal,Medicare Planning,Annuities,Alternative Asset Class Planning,Investment Consulting & Allocation Design,Insurance & Risk Management Planning,Retirement Income Distribution Planning,Education Funding & Financial Aid Planning,Fee-Only Comprehensive Financial Planning,Long-term Care Insurance,1031 Exchanges,Wealth Engineering,Stock Market Alternative,Wealth Management,Life Insurance,Inves

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H&R Block Inside Russell Square Shopping Center
(406) 251-6020
1132 SW Higgins Ave Ste 210
Missoula, MT

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Computer Consulting Corp
(406) 723-4335
Butte, MT
 
The Tax Shop
(406) 782-1955
2035 Grand Ave
Butte, MT
 
Hanni Ronald W CPA
(406) 494-4754
2900 Lexington Ave
Butte, MT
 
H&R Block
(406) 727-3577
7353 Goddard Dr Bldg 1150
Malmstrom Afb, MT

Data Provided by:
Campbell and Associates,CPAs
(406) 728-9288
2505 S Russell
Missoula, MT
 
Taylor Boyd CPA PC
(406) 723-4335
Butte, MT
 
Ouellette-Anderson Debbie CPA
(406) 494-4754
2900 Lexington Ave
Butte, MT
 
Bristol Robert L CPA
(406) 494-4754
2900 Lexington Ave
Butte, MT
 
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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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