Certified Public Accountants

Federal Unemployment Taxes

To determine your quarterly liability for FUTA, multiply by .008 that part of the first $7,000 of each employee's annual wages that you paid during the quarter. If the resultant liability for the quarter is $100 or less, there is no requirement to deposit it currently, you merely add it to your liability for the following quarter.

If your liability for any calendar quarter (plus any undeposited taxes for an earlier quarter) is more than $100, you are required to deposit the taxes with a federal tax deposit coupon, at an authorized financial institution or federal reserve bank by the end of the following month.

If the tax reported on your Federal Unemployment Tax Return, Form 940, less deposits for the year:

1. is more than $100, you must deposit all of the tax by January 31, or,
2. is less than $100, you may pay the taxes when you file Form 940.