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Updated for 2011

Federal Unemployment Tax (FUTA)

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When You Must Make FUTA Tax Deposits

If FUTA tax exceeds $500 in any quarter, you must deposit the tax by the last day of the month after the quarter the tax exceeds $500.

If during any quarter the FUTA tax is $500 or less, you do not have to deposit the tax. You carry over the undeposited tax to the next quarter and add it to that quarter's FUTA tax to determine if the $500 amount has been exceeded.

How To Determine if FUTA Taxes Exceed $500 in Any Quarter:

  1. Figure the liability for each quarter you're in business and have employees.
  2. If your FUTA liability for any quarter exceeds $500, deposit the entire tax for that quarter by the last day of the month immediately after the end of that quarter.
    • For example, say you began business in April and you're on a calendar year (which means, December 31 is the last month of your tax year).
      • If, by June 30, the end of the first quarter your were in business (which includes April, May, and June), your FUTA tax liability exceeds $500, you must deposit the tax by July 31, the last day of the month after the end of the quarter.
      • If the deposit date falls on a Saturday, Sunday or legal holiday, then you have until the next business day to make the deposit.
  3. If your first quarter FUTA tax liability is $500 or less, no deposit is due. Simply carry over the amount of the undeposited FUTA tax to the next quarter.
  4. If the next quarter's FUTA tax PLUS the prior quarter's undeposited FUTA tax still do not exceed $500, no deposit is due.
    • For example, if first quarter FUTA is $200 and second quarter FUTA is $300, the accumulated FUTA is $500.
    • Since $500 or less does not have to be deposited, you carry the $500 over to the third quarter.
    • Add the accumulated $500 from the first and second quarter to the third quarter FUTA tax.
  5. When the accumulated FUTA tax liability from each prior quarter plus the current quarter FUTA tax exceed $500, deposit the total amount of the accumulated FUTA taxes by the last day of the month following the quarter the liability exceeded $500.

Another Example:

Fourth Quarter Liability:

If the fourth quarter FUTA tax liability, PLUS any undeposited FUTA tax from a previous quarter exceeds $500, you must deposit the entire amount of the tax by January 31, 2012.

If the fourth quarter FUTA liability, PLUS any undeposited FUTA tax from a previous quarter is $500 or less, you can either deposit the tax or pay the tax with your Form 940 filed by January 31, 2012

2009 Deposit Due Dates for FUTA Taxes:

  1. If over $500 by March 31, deposit by April 30.
  2. If over $500 by June 30, deposit by July 31.
  3. If over $500 by September 30, deposit by October 31.
  4. If over $500 by December 31, deposit by January 31

When the deposit due date falls on a Saturday, Sunday, or legal holiday, you may deposit the tax by the next business day.

Next:

Federal Unemployment Tax (FUTA): When You Can Pay FUTA Taxes Annually With Form 940

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