July 1, 2011
FUTA Changes


Beginning on July 1, 2011 the FUTA surtax is no longer in effect.  FUTA or Federal Unemployment tax is an employer payroll tax paid on the first $7,000 of an employee's pay.  Employers need to separately track FUTA taxable wages paid before July 1, 2011 and FUTA taxable wages paid after June 30, 2011.  If you have a payroll service, this should be taken care of by your provider. (Note - the maximum FUTA tax per year was $56 per employee or 0.08% times the first $7,000 per employee.)