Federal Unemployment Tax Act (FUTA)
Normally the tax rate is 0.8% (6.2% - 5.4% credit) on all employees who
participate in the state unemployment. For those individuals who elect out of
the state unemployment (e.g., officers of the corporation) the rate is 6.2%. The
rate is applied to the first $7,000 of wages each year.
This is a tax on the employer and should be deposited by the last day of the
first month after the quarter ends. They want their money whenever it has accumulated
to more than $100. Charitable or 501(c)(3) organizations are exempt
under IRC §501(a).
Per IRS Publication 15-A generally benefits received under a Cafeteria Plan
are not subject to Social Security, Medicare, and FUTA taxes, or income tax
Form 940 or 940-EZ is due by January 31st for the