Who is required to pay FUTA tax?

Last modified 3/31/2023 5:28:06 AM EST

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.