Business Tax Recovery Logo


Tax Deduction Consulting: FUTA Payroll Tax Deduction Rutland VT

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
(802) 442-3100
222 NORTH ST
BENNINGTON, VT

Data Provided by:
H&R Block Inside St Albans Commons
(802) 524-3140
178 SWANTON RD
SAINT ALBANS, VT

Data Provided by:
Danaher Attig & Plante PLC
(802) 383-0399
150 Kennedy Drive
South Burlington, VT
 
Jacob Philip H Tax And Business Services
(802) 862-8889
12 Perrotta Pl
Burlington, VT
 
Guinness Tax Service
(802) 658-2132
34 Patchen Rd
South Burlington, VT
 
H&R Block
(802) 479-9100
TWIN CENTER PLAZA SHOPPING CENTER 1284 RTE 302
BERLIN, VT

Data Provided by:
Harton & Associates Robert & Jeff
(802) 878-4458
57 River Rd
Essex Junction, VT
 
Liberty Tax Service
(866) 871-1040
972 Putney Rd # 6
Brattleboro, VT

Data Provided by:
Champlain Tax Service
(802) 863-1040
20 Kimball Ave
South Burlington, VT
 
H & R Block
(802) 879-0683
187 Pearl St
Essex Junction, VT
 
Data Provided by:

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 ...

Click here to read the rest of this article from BusinessTaxRecovery.com