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Government Requirements
8109: FUTA Tax Payments Go to topics
FUTA taxes are paid using EFTPS, but the deposits must be made separately. Because this tax is so small, the deposits are infrequent: The IRS wants you only to make deposits quarterly if your accumulated, but unpaid FUTA tax is more than $500 at the end of any calendar quarter. At year-end, these payments are reconciled and any balance due is paid with IRS 940.

Forms to use  EFTPS online payment
 
Tax rate  0.6% on the first $7,000 of gross income. Employer pays. Do not deduct from employee salary.

Joan earns $25,000 per year. Beginning every January - or whenever Joan is first employed, your company must pay .006 times her gross salary for FUTA taxes. These payments should continue until she has earned $7,000 for the year. At that point, no more payments are required for that calendar year.

Note: It is irrelevant whether Joan worked for another employer during the year. The taxes are collected on the first $7,000 in wages paid by each employer.

Deposit how often?  Usually a quarterly deposit requirement.
 
Due date  If the cumulative tax at the end of any quarter exceeds $500, this tax must be deposited by the last day of the month following the calendar quarter-end: April 30, July 31, October 31. If at year-end the cumulative tax never reached $500, do not use this form. Instead, pay the tax with IRS 940 by January 31st.
 
To pay  
  • Pay taxes electronically using EFTPS (free service).
  • Pay via credit card (with a service fee). There are two approved providers:
    • Link2Gov Corporation at (888) 729-1040. For questions call (888) 658-5465 or visit www.pay1040.com
    • Official Payments Corporation at (800) 272-9829. For questions call (877) 754-4413 or visit www.officialpayments.com
 
Two FUTA rates?  If you read IRS information you may see a FUTA rate of 6%, rather than the 0.6% mentioned in these instructions. This is because there are actually two FUTA rates - a high one for states without an unemployment insurance program, and a low one for states which have a program. However, if any of your employees claim they are exempt from state unemployment insurance but are NOT exempt from FUTA, they may have to pay the higher FUTA rate.
 
Corporate officers  Even though corporate officers are often exempt from state unemployment tax, they are NOT exempt from FUTA taxes. To avoid the 6% FUTA rate, it is best to ignore the state exemption and pay the regular state UI tax for corporate officers.
 
Questions?  Call the IRS information hotline at (800) 829-4933.