FUTA Calculations
In this video you will calculate your federal unemployment tax.
You must make a deposit to the IRS once your liability reaches $500. If you don't reach this $500 limit by the end of the year, then your payment will be due at the end of the year with your IRS 940 form.
Federal Unemployment is paid on the first $7000 of each employee's taxable wages.
This tax is paid by the employer and is not withheld from the employee's paycheck.
The current rate (2014) is 6%; however, most states are eligible for a credit which reduces it to .6%. If you pay your state unemployment tax on time, then you will be eligible for the reduction in rate.
This video goes through step by step examples on how to calculate and keep track of your ongoing tax liability for FUTA.