How do I calculate futa, federal unemployment tax act?

Answer by  patti (29325)

The IRS website offers information about the calculation of FUTA. This includes info about the percentages, rates and limits. A tax professional can help decipher the information.

Answer by  patti (29325)

From the FUTA website: For years through December 31, 2008, the FUTA imposes a 6.2% tax on the employer for the first $7,000 of gross earnings of each worker per year, with the rate changing to 6.0% for compensation paid during 2009 and later years.

Answer by  Chaneygirl (1755)

As a general rule, calculate FUTA on the first $7,000 of each employee's wages. Multiply each employee's wages by. 008. This is the rate for most employers.

Answer by  patti (29325)

There is a FUTAtax website that details how the tax is calculated. The rate is different for various years, so you need to check the specific year to get the correct rate.