The Federal Unemployment Tax Act (FUTA) is a federal payroll tax that helps fund unemployment benefits.

In response to the COVID-19 crisis, most states took action in mid to late 2020 and early 2021 to minimize some of the financial concerns (i.e., increases in SUI tax expenditures) that might affect companies in the calendar year 2021. As a result, most states reduced the taxable wage base last year.

In this article, we will talk about FUTA, its current tax rate and how much you need to pay for FUTA.