Summary Definition: U.S. law that created federal payroll taxes for funding unemployment programs.
The Federal Unemployment Tax Act (FUTA) is a federal law that imposes a payroll tax on most employers to help fund unemployment assistance programs.
The funds created by FUTA are used to provide financial assistance to workers who have lost their jobs through no fault of their own. At the state level, payroll taxes called State Unemployment Insurance (SUI) often supplement those funds raised from FUTA.
We know there's a lot that goes into preparing and filing payroll tax forms. Save time and get support from our expert team. As a Registered Reporting Agent with the IRS, we can help prepare and file all the necessary forms you need to remain compliant - even in the face of changing legislation. Learn more here.