Featured:
Allergies
Grilling Guide
eHow Now Blog

What Wages Constitute FUTA Wages?

What Wages Constitute FUTA Wages? thumbnail
Employers pay unemployment compensation and report wages as FUTA taxes.

Employers must file an IRS 940 Federal Unemployment Tax Act (FUTA) form when reporting wages paid into the federal unemployment system. Employees who lose their job can use these wages as unemployment compensation. An employer only makes FUTA wage payments under certain circumstances.

  1. General Employers

    • An employer pays FUTA if he had given wages of $1,500 or more to his employees for the year in which he plans to file the IRS 940 FUTA return or for the prior year before the reporting year. The employer counts all temporary, full-time and part-time employees' wages as the FUTA wages, except for those employees who are partners working in partnership corporations.

    Household Employers

    • As a household employer whose workers perform household duties in a private home, such as a hired chef or personal maid, the employer must pay FUTA wages if she had paid $1,000 or more cash wages in the calendar quarter. These cash wages had to occur for the year in which she plans to file the 940 FUTA return or for the prior year before the reporting year. Employers must pay FUTA wages for other employees including those who work at local college clubs or local sorority or fraternity college chapters.

    Agricultural Employers

    • For agricultural businesses, employers pay FUTA wages when paying cash of $20,000 or more to farm workers. The pay period has to consist of any calendar quarter for the year in which he plans to file the 940 FUTA return or for the prior year before the reporting year. This includes paying wages to immigrant employees given permission into the United States to perform farm work.

    Successor Employers

    • An employer who gains all of a business from another person who was obligated to file an IRS form 940 due to FUTA tax purposes has to continue to pay FUTA wages for this business. The successor employer must hire one or more people who were the predecessor's employees right after acquiring the business.

Related Searches:

References

  • Photo Credit Jupiterimages/Photos.com/Getty Images

Comments

You May Also Like

  • IRS 940 Form Instructions

    Employers fill out an IRS 940 Federal Unemployment Tax Act, or FUTA, form to annually report the funds paid into the unemployment...

  • How to Calculate FUTA & SUTA Taxes

    FUTA and SUTA taxes are forms of payroll tax that are deducted from the wages of all W-2 employees. FUTA is an...

  • How to Calculate SUTA Taxes

    Employers are required to pay both state unemployment payroll taxes (SUTA) and federal unemployment payroll taxes (FUTA). The percentage of the SUTA...

  • What Does a Tune Up on an Auto Consist Of?

    A tune up can consist of many different things depending on where you choose to get your car serviced. While mechanics offer...

  • What Are FUTA Wages?

    IRS Form 940 is the annual tax form that employers must fill out and submit to report their payroll subject to FUTA...

  • What Is the FUTA Tax?

    Employers are required to pay FUTA taxes. FUTA taxes are not considered withholding as employees do not have FUTA taxes withheld from...

  • Do You Have to Pay Taxes on Unemployment If You Have the Taxes Withheld From Check?

    Unemployment benefits are paid by a state's employment security commission or employment development department. All monies received through unemployment insurance ...

  • Tax Procedures for Employing a Nanny

    Tax Procedures for Employing a Nanny. A nanny is a household worker if she is not a self-contractor or works for an...

  • How to Calculate FUTA Taxes

    FUTA (Federal Unemployment Tax Act) tax is one of several payroll taxes. FUTA tax is not deducted from an employee's paycheck like...

  • FUTA Tax Return Instructions

    An employer's annual Federal Unemployment (FUTA) Tax Return is filed with the Internal Revenue Service (IRS) with Form 940. A FUTA return...

  • How to Calculate a FUTA Return

    Form 940 is the FUTA tax return. This return is to report Federal unemployment taxes to the Internal Revenue Service. When making...

  • How to File a Business 940 Form

    Internal Revenue Service (IRS) business form 940 is used to report unemployment taxes called FUTA, for Federal Unemployment Tax Act. This tax...

  • How Is Unemployment Paid For?

    During periods of economic hardship, companies often lay off workers in an effort to cut costs and maintain profitability. Unemployment insurance is...

  • What Are FUTA Taxes?

    Federal Unemployment Tax Act taxes help pay for the program that provides unemployment benefits to laid-off workers. Most employers in the United...

  • Minimum Wage Vs. Unemployment

    For American workers, minimum wage and unemployment laws protect against unfair labor practices. These two types of regulations also provide workers with...

  • Who Pays Federal Unemployment Taxes?

    The Federal Unemployment Tax Act requires employers to pay federal unemployment tax, which is used with state unemployment tax to provide temporary...

  • What Is the Deposit Frequency for Federal Unemployment Tax Liabilities?

    Federal unemployment tax liabilities have specific deposit requirements. The Federal Unemployment Tax Act (FUTA) requires that a federal unemployment payroll tax be...

  • 940-EZ Form Instructions

    As of the 2008 tax period, the Internal Revenue Service (IRS) is no longer using or accepting Form 940-EZ. Anyone who would...

  • How to Compute Payroll Taxes

    Employees working in the United States are subject to withholding for federal income tax (FIT), federal social security and Medicare taxes and...

Related Ads

thumbnail
Featured