Understand FUTA tax and how it impacts your business. Learn what FUTA is, 2025 FUTA tax rates, credits, and how to calculate and file your FUTA tax liability.
Form 940 Extensions: If all tax is deposited when due, deadline is extended 10 days. There is no additional extension for filing Form 940. Form 940 Penalties Form 940 late filing penalty of 5% of tax per month up to 25%. Form 940 late payment penalty of 0.5% of tax per month up to...
The due date to report FUTA is January 31 of the year following the previous year (so FUTA taxes for tax year 2023 will be reported on January 31, 2024). In order to report FUTA, employers must fill out and fileIRS Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return; ...
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...
Peter J. Stipek
Federal Unemployment Tax Act (FUTA) is a US federal law for employers to pay taxes on their employees wages, funding unemployment benefits.