FUTA Surtax Changes
Federal Unemployment Tax (FUTA) is a tax on the employer. It is not withheld from employees' wages. The tax is calculated on the first $7,000 of an employee's wages.
Since 1976, the effective rate has been .8% (.008). This .8% effective rate included a .2% temporary surtax. As of July 1, Congress allowed the "temporary" FUTA surtax of 0.2% to expire. Thus, the effective tax rate on taxable FUTA wages paid after June 30 is .6% (.006).
Additional information can be found on the IRS website.
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