Business Tax Recovery Logo


Tax Deduction Consulting: FUTA Payroll Tax Deduction Sioux Falls SD

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.

Liberty Tax Service
(866) 871-1040
1520 W 12th St
Sioux Falls, SD

Data Provided by:
H&R Block
(605) 332-8081
4601 E ARROWHEAD PKWY STE 101
SIOUX FALLS, SD

Data Provided by:
Mr. Todd M. Klein (RFC®), CFP
(605) 348-2433
1241 E St. Joseph St
Rapid City, SD
Company
Fintegra, LLC
Qualifications
Years of Experience: 19
Membership
IARFC
Services
Invoice, Estate Planning, Portfolio Management, Retirement Planning, Tax Planning, Tax Returns, Stocks and Bonds, Mutual Funds, CD Banking, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Education Plan

Data Provided by:
Liberty Tax Service
(866) 871-1040
532 E Anamosa St
Rapid City, SD

Data Provided by:
H&R Block
(605) 362-2567
3400 EMPIRE MALL
SIOUX FALLS, SD

Data Provided by:
Liberty Tax Service
(866) 871-1040
5216 W 26th St
Sioux Falls, SD

Data Provided by:
H&R Block
(605) 362-2567
3400 EMPIRE MALL
SIOUX FALLS, SD

Data Provided by:
H&R Block Inside Sears At Rushmore Mall
(605) 399-2114
2200 N MAPLE AVESW Suite 8
RAPID CITY, SD

Data Provided by:
Liberty Tax Service
(866) 871-1040
1520 W 12th St
Sioux Falls, SD

Data Provided by:
Liberty Tax Service
(866) 871-1040
5216 W 26th St
Sioux Falls, SD

Data Provided by:
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