The 2024 FUTA tax rate is 6% of the first $7,000 paid to each employee, with the possibility of receiving a credit based on state unemployment insurance taxes. Employers must report and file with FUTA taxes annually using Form 940. Nontaxable fringe benefits such as group term life insurance...
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...
The FUTA tax rate is 6%. According to the Internal Revenue Service (IRS), the "tax applies to the first $7,000 you paid to each employee as wages during the year. The $7,000 is often referred to as the federal or FUTA wage base. Your state wage base may be different based on th...