The tax on wages subject to the Federal Unemployment Tax Act (FUTA) is reduced effective for wages paid after June 30, 2011. The amount of wages per employee per calendar year subject to FUTA is $7,000.

Date
FUTA Rate
Before July 1, 2011
6.2%
After June 30, 2011
6.0%

Employers subject to FUTA. An employer is subject to FUTA in 2011 on the wages paid to employees who are not farm workers or household workers if:
• The employer pays wages of $1,500 or more in any calendar quarter in 2011, or
• The employer has one or more employees for at least some part of a day in any 20 or more different weeks in 2011.

Employers are subject to FUTA in 2011 on the wages paid to farm workers if:
• The employer pays cash wages of $20,000 or more to farm workers during any calendar quarter in 2010 or 2011, or
• The employer employs 10 or more farm workers during at least some part of a day during any 20 or more different weeks in 2011.

Employers are subject to FUTA in 2011 on the wages paid to household employees if:
• The employer pays wages of $1,000 or more in any calendar quarter of 2011.

State credit against tax. Employers are allowed a state credit against the FUTA tax for amounts that are paid into state unemployment funds. The credit cannot be more than 5.4% of taxable wages.