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Federal unemployment tax (FUTA)

The Federal Unemployment Tax Act (FUTA) provides for payments of unemployment compensation to workers who have lost their jobs. Only employers are subject to a FUTA tax liability; it is not deducted from the employee's wages.

Most employers pay both a Federal and a state unemployment tax. Go onlineContact the IRS or your state agency for more information.

See also

KB ID# H_PAY_GL_FUTA
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