The Federal Unemployment Tax Act
The Federal Unemployment Tax Act, or FUTA as it’s commonly known for, helps fund state workforce agencies in the United States. In order to file this tax, employers will fill out Form 940 and sometimes pay the tax in installments during the year.
FUTA supports the government use of job programs and the insurance that unemployed citizens are deemed rightful to when without a job. Each state has a different tax percentage in which they pay in the Federal Unemployment Tax. South Carolina employers pay 0.3% in the Federal Unemployment Tax each year.
As a community, we want to ensure that every citizen has the means to employment, and with the money from this tax going into job growing and producing measures, it is achieving the purpose for employer and employee.
If you have any questions regarding taxes, please feel free to contact Hoods Tax and Accounting! We would love to speak with you!
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