If as a owner I elect not to be covered under state unemployment. Fed rate will
Rise. Why and by how much
The required FUTA tax rate is 6% on the first $7,000 of an employee’s wages. If you pay your SUTA (State Unemployment Tax) then the amount you must pay to the IRS is reduced to .6% times $7000 or $42. However, if you do not pay SUTA tax then you will be required to remit the entire 6% on the first $7000 to the IRS. Since the laws differ by state, be sure to look at the rules and regulations for state unemployment tax in your state. Here are a couple of resources where you can learn more about unemployment taxes and a map to your state’s tax website:
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