Household Employees

• If your employees fall under the category of household employees (such as maids or babysitters), you do not make FUTA deposits via a Form 940, but instead annually, by reporting it on your individual income tax return.
  
  

Tax Rate

• The FUTA tax rate is 6.2 percent of the first $7000 of an employee's wages; however an employer can receive a credit up to 5.4 percent if you have an experience rate lower than 5.4 percent.
  
  

FUTA Tax Amount

• If your FUTA tax is more than $500 per year, you must deposit FUTA tax quarterly, in the quarter the tax reached $500.
  
  

When to File

• You may be required to file FUTA taxes prior to April 15. Contact the IRS for details or review the website for this year's deadlines for FUTA.
  
  

Where to File

• You can file your Form 940 with an authorized financial institution or online via EFTPS (Electronic Federal Tax Payment System).