Federal Unemployment Tax Act


Also found in: Acronyms, Wikipedia.

Federal Unemployment Tax Act

Commonly called FUTA. Legislation in the United States authorizing the federal government to levy an unemployment compensation tax, which pays for the unemployment insurance of the unemployed labor force. The taxes permitted under FUTA pay for the federal government's half of unemployment insurance; the other half is provided by states. However, FUTA sets up a fund from which states can borrow to pay for their half.
References in periodicals archive ?
Effective February 15, 2000, the pension offset provision dealing with benefit reductions, is modified to make it consistent with the Federal Unemployment Tax Act.
1) The Employment Security Administrative Funding Act of 1954 (also known as the Reed Act) provided that the annual excess, if any, of Federal Unemployment Tax Act revenues over Federal and State administrative expenses and Federal Extended Benefits and loan fund requirement be allocated to States in proportion to covered payrolls.
Want to voluntarily reclassify certain workers as employees for federal income tax withholding, Federal Insurance Contributions Act (FICA), and Federal Unemployment Tax Act (FUTA) purposes for future tax periods;
The S corporation is also responsible for Federal Unemployment Tax Act (FUTA) taxes.
Section 3309 of the Federal Unemployment Tax Act enables 501(c)(3) organizations to opt out of the tax system and reimburse the state only for unemployment claims the state has paid out to the nonprofits' former employees.
The Social Security Act and the Federal Unemployment Tax Act form the framework and State unemployment insurance laws govern the programs within this framework.
If structured incorrectly, the business contracting-out the work can be exposed to prodigious federal employment tax liabilities, consisting of the employer's share of Federal Insurance Contributions Act (FICA) and Federal Unemployment Tax Act (FUTA) taxes that should have been paid, federal income taxes and the employee's share of FICA taxes that should have been withheld, interest, and applicable penalties.
Employment taxes for these purposes include the employer and employee portion of Federal Insurance Contributions Act (FICA) taxes, Federal Unemployment Tax Act (FUTA) taxes, Railroad Retirement Tax Act taxes (RRTA), and federal income taxes withheld from wages.
When a third-party insurance company assumes salary payments to employees on long-term disability, employers often retain responsibility for paying and reporting those employees' share of Social Security, Medicare and Federal Unemployment Tax Act contributions and must report federal income tax withheld and deposited by the third party.
The Federal Insurance Contributions Act (FICA) and the Federal Unemployment Tax Act (FUTA) require companies to retain these records for at least four years.
The Act reinstated and made permanent the Federal Unemployment Tax Act exemption for wages paid to certain aliens (known as H-2A workers) who are admitted to the United States to perform agricultural labor.
Employee status for a worker requires the employer to withhold income tax payments from the employee's wages,(5) requires employer payment of both the employer and employee portions of the Social Security tax (imposed under the Federal Insurance Contributions Act (FICA)),(6) and, with respect to private employers, employer and employee contributions under the Federal Unemployment Tax Act (FUTA).

Full browser ?