What is form 940-PR?
191 views | Last modified 10/5/2023 8:19:17 AM EST | Added by TaxBandits Team

The Federal Unemployment Tax Act is represented by Form 940-PR (FUTA). For those workers who lose their jobs, the FUTA tax provides funds to provide unemployment benefits. Employers only pay FUTA tax; employees' paychecks are not withheld from FUTA tax payments. The first $7,000 of each employee's earnings is subject to a 6% employer tax. The state unemployment tax (SUTA) can be successfully reduced to 0.6 percent if it is paid on time.