Who is required to pay FUTA tax?

FUTA (Federal Unemployment Tax Act) tax is paid by employers based on wages paid to employees. Employers are required to pay FUTA tax under these conditions:

• If you paid $1,500 or more in wages to your employees during the fiscal calendar year.
• If you had an employee for some hours during the day for 20 or more different weeks during the current or previous fiscal year.

For domestic employees:

• If you paid cash wages of $1,000 or more in any annual quarter during the current or prior tax year.

For agricultural employees:

• If you paid wages of $20,000 or more to farmworkers in any annual quarter during the current or prior fiscal year or
• If you had more than 10 farmworkers for some hours during the day for 20 or more different weeks during the current or previous fiscal year.