So, while many employees may not have heard of it, employers must know their FUTA tax responsibility to avoid costly penalties from the Internal Revenue Service (IRS). This blog will explain what FUTA is, what businesses must pay and file it, the current tax rate, and how it impacts ...
What Is the FUTA Tax Rate and Limit for 2023? Consistent with prior years, the effective FUTA rate for 2023 is 6%, meaning employers should withhold 6% of the first $7,000 of an employee's wages. As $7,000 is the limit. The tax credit of up to 5.4% for state unemployment tax is...