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Computing the tax. The FUTA tax is imposed at a single flat rate on the first $7,000 of wages that you pay each employee. Once an employee's wages for the calendar year exceed $7,000, you have no further FUTA liability for that employee for the year. The FUTA tax rate is 6 percent. That is the tax rate that applies to the first $7,000 in wages paid to each of your employees during the year. Credit for state unemployment taxes. You can generally claim credits against your gross FUTA tax to reflect the state unemployment taxes you pay.
The Department of Labor announced that employers will be subject to an increased FUTA tax rate in January 2015 based on FUTA taxable wages paid during 2014 in these affected states: California, Connecticut, Indiana, Kentucky, New York, North Carolina, Ohio and the Virgin Islands.