The Federal Unemployment Tax Act sets up the system that funds unemployment insurance programs across the country. Understanding FUTA matters if you're an employer, a business owner, or someone trying to understand how unemployment benefits get paid for. This tax is what makes the unemployment insurance system work—it's collected from employers and used to pay benefits to workers who lose their jobs.
The articles here explain how FUTA works, who has to pay it, what the tax rates and wage bases are, and how it connects to state unemployment programs. You'll learn about exemptions that might explore to certain types of employers or workers, and how FUTA interacts with other payroll taxes and unemployment systems.