FUTA Definition
What Does FUTA Mean?
FUTA stands for Federal Unemployment Tax Act and is reported on the IRS annual Form 940.
Extended Definition
FUTA tax is the federal part the unemployment insurance program created by the Federal Unemployment Tax Act. Employers pay FUTA tax to fund the federal government’s part in overseeing each state’s unemployment (SUTA) program.
Related Blog Articles:
FUTA Surtax Set to Expire, Adding Confusion for Payroll Managers
What is FUTA?