Federal Tax Rate
The FUTA tax rate is 6.2% of taxable wages. The taxable wage base is the first $7,000 paid in wages to each employee during a calendar year. Employers who pay the state unemployment tax, on a timely basis, will receive an offset credit of up to 5.4% regardless of the rate of tax they pay the state. Therefore, the net federal tax rate is generally 0.8% (6.2% – 5.4%). This would equate to a maximum of $56.00 per employee, per year (.008 X $7,000. = $56.00) in federal tax. State tax rates are based on requirements of state law. A table of current tax rates and taxable wage base information for individual states is available in this web site under, 밢n This Page?Tax Statistics 2002.(<a href=http://workforcesecurity.doleta.gov/unemploy/uitaxtopic.asp)
target=_blank>http://workforcesecurity.doleta.gov/unemploy/uitaxtopic.asp)
