[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-1-en-105":3,"doc-seo-303658-105":53,"doc-detail-303658-en":126},{"code":4,"msg":5,"data":6},0,"success",[7,14,19,24,29,34,39,44,49],{"id":8,"doc_module":9,"doc_module_name":10,"category_name":11,"show_sort_weight":12,"slug":13},11,1,"Template","Presentations",90,"presentations",{"id":15,"doc_module":9,"doc_module_name":10,"category_name":16,"show_sort_weight":17,"slug":18},12,"Resumes",80,"resumes",{"id":20,"doc_module":9,"doc_module_name":10,"category_name":21,"show_sort_weight":22,"slug":23},14,"Invoices",70,"invoices",{"id":25,"doc_module":9,"doc_module_name":10,"category_name":26,"show_sort_weight":27,"slug":28},15,"Posters",60,"posters",{"id":30,"doc_module":9,"doc_module_name":10,"category_name":31,"show_sort_weight":32,"slug":33},16,"Social Media",50,"social-media",{"id":35,"doc_module":9,"doc_module_name":10,"category_name":36,"show_sort_weight":37,"slug":38},17,"Forms",40,"forms",{"id":40,"doc_module":9,"doc_module_name":10,"category_name":41,"show_sort_weight":42,"slug":43},18,"Letters",30,"letters",{"id":45,"doc_module":9,"doc_module_name":10,"category_name":46,"show_sort_weight":47,"slug":48},21,"Paper Templates",5,"papers-templates",{"id":50,"doc_module":9,"doc_module_name":10,"category_name":51,"show_sort_weight":4,"slug":52},158,"General","general-158",{"code":4,"msg":54,"data":55},"ok",{"site_id":56,"language":57,"slug":58,"title":59,"keywords":60,"description":61,"schema_data":62,"social_meta":119,"head_meta":121,"extra_data":123,"updated_unix":125},105,"en","unemployment-insurance-taxes-federal-and-state-employer-payroll-tax-rates","Unemployment Insurance Taxes - Federal and State Employer Payroll Tax Rates","","Explains unemployment insurance (UI) employer payroll tax obligations under federal and state law, including conditions requiring payment of both state and federal unemployment taxes. Summarizes the Federal Unemployment Tax Act (FUTA) role, how FUTA funds state workforce agencies, and how FUTA tax is calculated using a taxable wage base and an available offset credit. 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Generally, employers must pay both state and Federal unemployment taxes if:\u003Cbr>1. they pay wages to employees totaling $1,500, or more, in any quarter of a calendar year; or\u003Cbr>2. they had at least one employee during any day of a week during 20 weeks in a calendar year, regardless of whether or not the weeks were consecutive. However, some state laws differ from the Federal law and employers should contact their state workforce agencies to learn the exact requirements. Click here for state links.\u003Cbr>FEDERAL UNEMPLOYMENT TAX ACT\u003Cbr>The Federal Unemployment Tax Act (FUTA), authorizes the Internal Revenue Service (IRS) to collect a Federal employer tax used to fund state workforce agencies. Employers pay this tax annually by filing IRS Form 940. FUTA covers the costs of administering the UI and Job Service programs in all states. In addition, FUTA pays one-half of the cost of extended unemployment benefits (during periods of high unemployment) and provides for a fund from which states may borrow, if necessary, to pay benefits. See IRS forms 940 and 940 Schedule A for FUTA year 2012 Federal Unemployment Taxes.\u003Cbr>FEDERAL TAX RATE\u003Cbr>FUTA taxes are calculated by multiplying 6.0 percent times the employer's taxable wages. The taxable wage base is the first $7,000 paid in wages to each employee during a calendar year. Employers who pay their state unemployment taxes on a timely basis receive an offset credit of up to 5.4 percent regardless of the rate of tax paid to the state. The FUTA tax rate for employers in states not subject to a FUTA credit reduction is generally 0.6%(6 .0% -5.4%), for a maximum FUTA tax of $42.00 per employee, per year (0 .006 X $7,000 = $42 .00) .\u003Cbr>STATE UNEMPLOYMENT TAX\u003Cbr>State law determines individual state unemployment insurance tax rates. See the table of current tax  rates and taxable wage base information for individual states. The state unemployment tax, paid to state workforce agencies, is used solely for the payment of benefits to eligible unemployed workers. |\n| \u003Cbr>Fact Sheet\u003Cbr>1 |\n\n\n| \u003Cbr>WORKER MISCLASSIFICATION\u003Cbr>Worker misclassification occurs when an employer incorrectly classifies a worker as a non-employee. Consequently, employers do not remit the appropriate amount of Federal and state employment taxes, and workers may not receive unemployment insurance benefits or the appropriate protections afforded to them as employees under the Fair Labor Standards Act, Occupational Safety and Health Act, and other Federal laws directed toward the protection of workers. Misclassifications can result from erroneous interpretation of the rules or from intentional disregard of the law. Interested parties may obtain information about the UI employer-employee relationship tests used in a state and a directory of UI Tax offices. This information is published annually by the Office of Unemployment Insurance.\u003Cbr>The rules that determine classification for employment at the Federal level follow common law. For IRS, the facts that provide evidence of the degree of control and independence fall into three categories:\u003Cbr>► Behavioral: Does the company control or have the right to control what the worker does and how the worker does his or her job?\u003Cbr>► Financial: Are the business aspects of the worker's job controlled by the payer?\u003Cbr>► Type of Relationship: Are there written contracts or employee type benefits, such as pension plan, insurance, vacation pay, etc.? Will the relationship continue and is the work performed a key aspect of the business?\u003Cbr>These factors are evaluated on IRS Form SS-8 , which employers and workers can file with the IRS to request a determination of the status of a worker for purposes of Federal employment taxes and income tax withholding. State unemployment insurance agencies use their o","cbCaiesZFa81QJZg","https://ap.wps.com/l/cbCaiesZFa81QJZg","pdf",214783,"English","# Unemployment Insurance Taxes\n## Federal Unemployment Tax Act (FUTA)\n## Federal Tax Rate\n## State Unemployment Tax\n## Worker Misclassification\n## Domestic Employers Coverage\n## Employers of Agricultural Employees","[{\"question\":\"When must employers pay state and federal unemployment taxes under UI rules?\",\"answer\":\"Employers generally must pay both state and Federal unemployment taxes when they pay wages of $1,500 or more in a quarter, or when they have at least one employee during any day of a week in 20 weeks of a calendar year. Requirements can differ by state.\"},{\"question\":\"How is the federal unemployment tax (FUTA) calculated?\",\"answer\":\"FUTA taxes are calculated by multiplying 6.0% times the employer’s taxable wages, with a taxable wage base of the first $7,000 paid per employee per calendar year. A timely state tax payment can provide an offset credit up to 5.4%.\"},{\"question\":\"What happens if a worker is misclassified?\",\"answer\":\"Worker misclassification occurs when an employer incorrectly classifies a worker as a non-employee, leading employers to remit the wrong Federal and state taxes. Misclassification can also prevent workers from receiving unemployment insurance benefits and other employee protections.\"}]","Unemployment Insurance Taxes - Federal and State Employer Payroll Tax Rates | PDF",1789805945]