- [Instructor] FUTA is the federal parallel to SUTA.
The IRS has a specific test for who has to pay FUTA,
but in brief, if you have regular employees
for a non-farming business, you need to pay.
The FUTA filing is annual,
but you have to make a quarterly deposit through EFTPS.
Let me show you how to do that.
So I've logged into the EFTPS site.
Once we've logged in,
we want to select our most common form.
This is going to be a Form 940,
the Employers Annual Unemployment Tax, all right.
Notice, we're just lacking the F in FUTA here.
Now, we want to make a federal tax deposit.
At the end of the year, we have to file the FUTA form,
but in our particular case, we're simply going
to make the federal tax deposit right now.
So we click that and click Next.
And it wants to know how much we're going to pay.
So I'll simply say that we're going to pay $1,234.56.
And this is for 2018.
And let's say that our settlement date
is the end of the month.
Now from here we're going to make sure
that we have the bank account number
that we're interested in using for this particular payment.
We click Next.
And then this is simply going to confirm
all the information that we have here.
It's going to talk about who the taxpayer EIN is for,
the type of deposit it's for.
In this case, it's our FUTA deposit.
We have to do this once a quarter.
The payment amount that we owe, the settlement date,
the account number, et cetera.
Now, you might ask, well, how do we know
how much we have to pay?
The answer is that should be calculated
by your payroll tax software.
If you don't know,
you can go through and get the government form online.
But the vast majority of payroll tax software will tell you
based on your taxable wages in a particular quarter
what your FUTA obligation is.
So make sure you get those records
before you start actually paying the FUTA deposit.
One difference between SUTA and FUTA
is just the amount of money that it's going to cost you.
SUTA's a relatively large cost for most business owners,
generally anywhere from at least a few hundred dollars
to minimum to several thousand dollars per quarter.
As you can see, it's a much more minimal paperwork burden,
but in general the FUTA liability that you'll owe
in any particular quarter is probably
at most a couple hundred dollars for most small businesses.
So you do need to do this,
but you shouldn't be worried about it
as a significant cost for the business.
Once we've done that, we're going to click Make Payment,
and now you're all set to comply
with FUTA's quarterly deposit requirements.