The National Directory of Certified Public Accountants

Ask A CPA - Bookkeeping & Write-up

Do I Have To Pay FUTA , Federal Unemployment Taxes ?

Depending on how much you paid in wages, how many employees you employed, and the "Type" of employee you employed, will determine if you have to pay Federal Unemployment taxes(FUTA)or not. The three different "types" of employees are Household employees, Farmworkers and everybody else. For non-Household of Farmworkers, the general test is that you are subject to FUTA tax on wages if you paid employee wages of $1,500 or you had one or more employees for at least some part of a day in any 20 or more different weeks. A Household worker is an employee who performs household work in a private home, local college club or local sorority or fraternity chapter. The Farmworkers test is that you are subject to FUTA tax on wages if you pay employees cash wages of $20,000 or more in any calendar quarter or you employed 10 or more farmworkers during at least some part of a day (whether or not at the same time) during any 20 or more different weeks.

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