FUTA TAX FOR 2012

Quick FUTA Facts

• The FUTA tax rate for 2012 = .6% on the first $7,000 of wages or $42 per employee for most employers.
• No requirement to pay quarterly towards the “credit reduction” amounts assessed on the annual Form 940 as of this date (April 25, 2012).

Instructions to the Form 940 for 2011: 

http://www.irs.gov/pub/irs-pdf/i940.pdf

This is where it states under the “What’s New” section in the upper left, that those employers in the credit reduction states, “…. employer must pay additional federal unemployment taxes when filing its Form 940“.  The 2012 Form 940 is due on January 31, 2013, so that’s when the credit reduction states’ employers will owe that additional FUTA tax.

The 2011 Schedule A which identifies all of the credit reduction states and the Schedule A instructions are located here:

http://www.irs.gov/pub/irs-pdf/f940sa.pdf

This Schedule may change for 2012, depending upon the monies borrowed by the individual states during 2012, or monies repaid to the federal government.