FUTA
FreeFederal unemployment tax computed against the annual wage base, employer-paid.
Where to find itPayroll → a run, and Forms → Form 940
How it works
- 1
Calculated on every run
FUTA is worked out against each employee's year-to-date wages up to the wage base, and shown in the run's federal payment.
- 2
Rate and wage base
Shown on the Tax rates page, and overridable if your situation differs.
- 3
Filed on Form 940
The annual Form 940 is filled in from the same numbers.
Good to know
- Employees in a FUTA credit-reduction state (California, for example) are flagged in the run's calculation warnings.
Screenshots show a demo company with sample data.
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