Employment & Environment: FUTA Flashcards
1
Q
Employment & Environment
FUTA
A
Purpose: provide unemployment to workers who lose jobs and cant find new ones
Mechanism:
- federal unemployment tax paid by employer
- state unemployment tax paid by employer
- state tax is credited against federal tax up to 90%
- state tax may go up or down depending on claims
- additional credit created by good claims record
- only on first $7k
- max federal tax fluctuates
- mandated federally, system administrated
- employer must file
Coverage is mandatory for qualifying employees
Eligibility:
- terminated involuntarily
- employee is looking for work
- employee is not receiving disqualifying income
- some states just dollar for dollar reduction
- Must file if 1 employee for 20 weeks
