This time of year many small business owe FUTA tax and do not realize it. You owe federal unemployment taxes if you paid at least $1500 in wages during any calendar quarter in the current or previous year. The wage base for FUTA is $7,000. Once employee year-to-date (YTD) wages exceed $7,000, an employer stops paying FUTA for that employee. FUTA (Federal Unemployment) Tax Deposit Rules
Generally, you must deposit your federal unemployment taxes on a quarterly basis. However, if your quarterly FUTA tax liability is $500 or less, you don't have to deposit it. Rather, you may carry it forward and add it to your FUTA liability for the next quarter. If your liability for the last quarter of the year (plus any undeposited amounts from prior quarters) is $500 or less, you have the option of either depositing the tax or remitting it with your annual return.
Assuming your quarterly FUTA tax liability is more than $500, you must make your quarterly FUTA deposits by the last day of the month that follows the end of each quarter:
Ending date of quarterDeposit due date
March 31April 30
June 30July 31
September 30October 31
December 31 January 31