FUTA

FUTA

The Federal Unemployment Tax Act (FUTA), authorizes the Internal Revenue Service to collect a federal employer tax used to fund state workforce agencies. Employers pay this tax annually by filing IRS Form 940. FUTA covers the costs of administering the UI and Job Service programs in all states. In addition, FUTA pays one-half of the cost of extended unemployment benefits (during periods of high unemployment) and provides for a fund from which states may borrow, if necessary, to pay benefits.

Let a PEO pay your company's FUTA on your behalf. Partner with AMS to alleviate you from the burdens associated with calculating and distributing taxes such as FICA, FUTA, and SUTA.

FUTA | AMS Staff Leasing