How do I calculate unemployment taxes?

There are two unemployment taxes: Federal Unemployment Tax (FUTA) and State Unemployment Tax (SUTA).

The rate for FUTA is 6% on the first $7,000.00 of wages for each employee.  This can be offset by as much as 5.4% for having paid SUTA to the appropriate State on a timely basis, leaving a net amount due of 0.6% of the first $7,000.00 of wages or $42.00 per employee. If you don’t pay the State unemployment the tax is $420.00 per employee.

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