What is Federal Unemployment Tax Act (FUTA)?
Written by Eddy Hood
The Federal Unemployment Tax Act has provisions for people who have lost their jobs. Unemployed people can receive unemployment compensation under FUTA and state unemployment systems. If you have employees, federal and state systems require you to pay unemployment taxes to contribute to these funds. You might use a FUTA tax calculator to find out how much you owe. Employees do not contribute a percentage of wages in FUTA tax; only employers are required to pay these taxes.
What is FUTA Tax?
Employers may ask themselves, "What is FUTA tax?" It's important for employers to learn about FUTA tax to ensure compliance with these laws. For every calendar year, the federal government imposes a tax that is a percentage of wages paid to employees if the employment meets federal requirements. Requirements for FUTA tax change annually, so check Internal Revenue Service guidelines to determine whether you owe FUTA taxes.
How to Calculate FUTA Tax
Once you learn the basics of FUTA tax, your next concern may be how to calculate FUTA tax. The IRS provides specific instructions for this tax; however, tax calculations can be challenging for many people. Ignite Spot's outsourced accounting services may be the answer to your tax questions. The Ignite Spot team is ready and able to assist you with these accounting services. Our outsourced bookkeeping firm specializes in assisting small business owners with every type of accounting task associated with owning a business, including tax preparation. Learn more about our company history to see exactly where we began and how we promise expert assistance with every facet of your company's accounting.
Outsourced Accounting and Bookkeeping
As an Ignite Spot client, you can completely outsource all of your business accounting tasks and receive trusted and expert bookkeeping services. When you turn over these crucial areas to our expert team, you can rest assured that we have the know-how and proficiency to handle your finances and help you achieve your business goals. Whether you have specific growth goals or simply want to reduce debt, we can help you reach important business milestones. You need skilled consultants on your team who will keep you informed about your company's finances to enable you to make sound business decisions. Our tax experts are also ready to walk you through exactly how to calculate FUTA tax without a FUTA tax calculator. Stop worrying and pass your accounting work to us.
Save Time and Money with Ignite Spot
When you are ready for more information, visit us online to request pricing details. After completing a simple form, we will send you a link to download our price guide. A quick perusal of this material will show you that we do things a little differently at Ignite Spot. We never charge our clients setup fees for current accounts. You will also never be locked into a long-term contract with Ignite Spot. Instead, as an Ignite Spot customer, you can look forward to increasing your profit margin, freeing up cash for your business, and reducing the hours spent on bookkeeping tasks. Come learn for yourself why business owners trust us to protect their business interests.
Learn More About Our Tax Services
- Understanding Self Employment Taxes
- How to File Self Employment Taxes
- Tax Implications of The Affordable Care Act on Small Businesses
- The Guide to Small Business Tax Preparation and Deductions
- How to File Small Businesss Taxes
- Self Employment Tax Deductions
- What is a Tax Write-Off?
- Small Business Tax Write-Offs