Tax Day 2024 and How to Get an Extension from the IRS
Tax Day is on Monday, Apr 15, 2024. Not ready to file? Submit an electronic request to the IRS for an extension ASAP!
Learn the basics of the FUTA tax in this article.
The Federal Unemployment Tax Act (FUTA) is an unemployment tax companies must pay on behalf of their employees. If your business paid at least $1,500 in wages during any business quarter in the current or previous year, you must pay FUTA.
FUTA – which has a different system and rate for each state – provides compensation to workers who’ve lost their jobs. The federal rate is 6.0%, and if employers live in a state with its own unemployment tax, they can earn a 5.4% credit for taxable income. That is, if they pay their State Unemployment Tax (SUTA) on time, and regularly.
Because of the SUTA tax credit, most employees end up paying 0.6% of the first $7,000 per year of each employee’s salary. The wage base for FUTA is $7,000. Generally, that equals a maximum cost for FUTA per employee per year as $42. The more employees, the more FUTA.
To determine what you must pay in FUTA, check out Form 940 here.
Tax Day is on Monday, Apr 15, 2024. Not ready to file? Submit an electronic request to the IRS for an extension ASAP!
IRS has updated tax brackets for 2024. See how this affects your first paycheck this year!
Check out the updated 2024 Federal benefit limits for 401(k), HSA, and simple IRA, and more. Stay informed and plan your finances with confidence!