Source of this page
This regulation detail page is rendered from the SMBRegs static catalog, not a live government database record. Use the official filing link below to verify current requirements before filing or relying on this summary.
Description
Employers who pay $1,500+ in wages in any quarter or have 1+ employees for 20+ weeks must pay FUTA tax at 6% on the first $7,000 of each employee wages. Most employers receive a credit reducing the effective rate to 0.6%.
Key Details
- Jurisdiction
- Federal
- Category
- Tax & Filings
- Renewal Frequency
- annual
- Estimated Cost
- $42 per employee per year (at 0.6% effective rate)
- Estimated Time
- 1-2 hours annually
Penalties for Non-Compliance
Penalties and interest on late payments; loss of FUTA credit if state taxes are late
Who This Applies To
Minimum Employees: 1+
Official Filing Link
https://www.irs.gov/forms-pubs/about-form-940Does this apply to your business?
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