Expiration of FUTA Surcharge Tax
The federal unemployment tax (FUTA) empowers the IRS to tax employers in all states to fund unemployment benefits for involuntarily terminated workers. For the past 23 years, FUTA included a 0.2% surcharge. This additional 0.2% surcharge provision expired on June 30, 2011. Therefore, unless extended by law, the FUTA rate has decreased from 6.2% to 6.0% of gross payroll, beginning July 1, 2011.
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