Unemployment Tax Calculator
Calculate federal FUTA (0.6% on first $7,000) and state SUTA unemployment tax obligations for single or multi-employee workforces.
Federal FUTA & State SUTA Taxes
Employer Unemployment Tax Formula
FUTA Per Employee = min(Salary, $7,000) × 0.6% | SUTA Per Employee = min(Salary, SUTA Base) × SUTA % | Total Tax = (FUTA + SUTA) × Number of Employees- Federal FUTA: 6.0% gross rate minus 5.4% maximum state credit = 0.6% net rate on the first $7,000 of wages ($42 max per employee/year).
- State SUTA: Rates vary from under 1% to over 10% depending on employer turnover and state trust fund solvency.
Step-by-Step Worked Example
Calculation Steps:
How to Use This Calculator
Assumptions & Limitations
- Assumes employer is timely in state filings and qualifies for the standard 5.4% FUTA tax credit.
Frequently Asked Questions
Do employees pay unemployment tax?
In 47 states, unemployment tax is 100% paid by the employer. Only three states (Alaska, New Jersey, and Pennsylvania) require minor employee payroll contributions toward state unemployment funds.
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