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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.
Calculate the amount of SUTA tax for the employee. Multiply the percentage of required SUTA tax by the employeeâs gross wages (including all tips, commissions and bonuses). For example, if your SUTA rate is 5.4 percent and the employeeâs wages are $400, your SUTA tax for that employee is 5.4 percent of $400 or $21.60. Step 4 Calculate the SUTA tax credit to be taken against your federal unemployment tax obligation (FUTA tax). The nominal 6.2 percent FUTA tax can be reduced by as much as 5.4 percent. Using the example from Step 3, you would take the maximum 5.4 percent credit, leaving a minimum FUTA tax of just 0.8 percent.