Federal Unemployment Tax — FUTA

Employers pay FUTA tax of 6% on the first $7,000 of each employee's wages. A credit of up to 5.4% is available for timely state unemployment tax payments, reducing the effective rate to 0.6%. File Form 940 annually.

Source Agency
IRS

Last Verified
March 1, 2026

Next Review
May 30, 2026

View Official Source ↗

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