Unemployment taxes are part of the Federal Unemployment Tax Act (FUTA) of the United States that imposes taxes on employers to help fund state agencies that administer state unemployment insurance programs. This tax is imposed on nearly all employers who need to pay state and federal taxes if they pay an average of $1,500 to their employees in each quarter of the calendar year.
Our free downloadable Sample Forms cover different unemployment tax forms that are accepted by the Internal Revenue Service (IRS). These include unemployment credit tax forms and other printable forms depending on the kind of tax needed in relation to the FUTA requirements. These can be printed and available in both Word Doc and PDF formats.
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State and federal unemployment taxes have been revised over the years, and President Barack Obama had FUTA requirements changed as recently as February 2011 under his proposed budget that was passed by Congress. It includes paying unemployment taxes if a company or employer has workers that are employed for a total of 20 weeks in each calendar year.
Federal unemployment taxes are being used for a variety of government-funded programs to help mostly unemployed but capable workers in job-related search programs. These are also used for extended unemployment benefits for workers who have been lain off their jobs specially in times of economic slowdown when unemployment begins to rise.
There are, however, exemptions that cannot be covered under FUTA requirements. The following are exempted from being covered by unemployment taxes:
For a complete list of exemptions, anyone can access the IRS website and look up unemployment tax exemptions under the Federal Unemployment Tax Act (FUTA) requirements section.
Besides unemployment tax forms, we also have free downloadable and printable tax forms that workers can use to claim tax credits. U.S. Federal laws are quite complicated when it comes to paying taxes. When you lose your job and is suddenly unemployed, that doesn’t mean you are automatically exempted form paying taxes.
As mentioned earlier, unemployment taxes employers must pay mostly go to government-funded programs that deal with unemployment benefits. If you are unemployed and a beneficiary to unemployment compensation, it’s a taxable income that you need to pay, especially if you chose not to have taxes withheld after receiving unemployment benefits.
Our Sample Tax Exemption Forms helps you file your tax exemptions especially on Earned Income Tax Credit or EITC. If you work in a job that’s not earning you much, chances are you’re eligible for EITC. You can check the IRS website for any tax exemptions that you can apply as tax credit, especially if you have a couple of dependents.