What is the deposit frequency for federal unemployment tax liabilities?
Federal unemployment, like state unemployment, acts as an insurance policy, one that employers have no choice but to pay. The frequency of the payments for federal unemployment tax (FUTA, for short.) depends on the amount of payroll.New BusinessesIf you are a new employer, you will have to calculate and pay deposits on FUTA taxes on a monthly basis. It’s a good idea to have the correct amounts set aside after each payroll period.Amount of FUTA tax dueThe frequency is also based on the amount of unemployment taxes due. If you owe more than $500 during any one quarter, you must file the FUTA taxes and deposit the amount using the IRS’s EFTPS tax payment website. If the amount is less than $500, it may be rolled over into the next quarter.Deposits Vs. PaymentsUsing the IRS’s EFTPS site, an employer may make regular deposits to his unemployment account on a quarterly basis. The payment is due before the 15th day of the first month of the following quarter. These payments are called “deposi
