The amount of an employer's FUTA tax liability determines when the tax must be paid; the form for reporting the tax is due in the first quarter of the year. As of Jul. 1, 2011, the FUTA tax rate was 6% of the first $7,000 paid to each employee annually. This means that if a company had 10 employees who each earned wages of at least $7,000 for the year, the company's annual FUTA tax would be 0.06 x $70,000 = $4,200. Only employers, not employees, pay the FUTA tax. Many states collect an additional unemployment tax from employers.
Investment dictionary. Academic. 2012.