The Federal Unemployment Tax Act (FUTA), with state unemployment systems, provides for payments of unemployment compensation to workers who have lost their jobs.
2017 Federal Unemployment Tax (FUTA)
For 2017, the FUTA tax rate is 6.0%. The tax applies to the first $7,000 you pay to each employee as wages during the year. The $7,000 is the federal wage base. Your state wage base may be different.
| Wage Limit | Rate | Max. Credit | Deposit Rate |
| $7,000.00 | 6.00% | 5.40% | 0.60% |
IRS resources
Most employers pay both a Federal and a state unemployment tax. A list of state unemployment tax agencies, including addresses and phone numbers, is available in Publication 926, Household Employer's Tax Guide.
Only the employer pays FUTA tax; it is not deducted from the employee's wages. For more information, refer to the Instructions for Form 940.
More links and resources from the IRS can be found here.