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The basics are that these taxes are paid by you, the employer, to the federal government to fund unemployment compensation benefits for employees who are out of work. For Prime Pay clients: Prime Pay will draft the additional amount due on your last scheduled payroll of December 2017.You are required to pay if either of these apply: Employers are taxed based on their type of business. The extra amount due will be up to 7 per employee, or 2.1 percent multiplied by taxable wages (up to ,000).The DOL adds a 0.3 percent increment to the FUTA rate each year if the state continues to carry an outstanding loan. If you run a business in a FUTA credit-reduction state and aren't sure how to calculate, file, or otherwise meet your unemployment insurance obligations, consider asking a payroll provider for help.Paychex tax services are staffed with experts who can guide you through these challenges.Paychex took aim at making the end of the year a little brighter, and a little less stressful, by awarding 18 small businesses 0 each in their Season of Small Business contest.

Any opinions expressed within materials are not necessarily the opinion of, or supported by, Paychex. A sordid drama played out at the Federal University of Technology Akure (FUTA), on Thursday, as the institution’s Registrar, Dr. Ajayi was told that a memo was printed out on her office printer behind her back. Adams was in the office and trying to download a memo written by the university’s Legal Director to the acting Vice-Chancellor, Professor Tunde Arayela, in respect of the court order issued to the university concerning the payment of staff salaries. Adams, a member of the Non-Academic Staff Union (NASU) of the university, was also bitten in the head by Dr. Sources told Sahara Reporters that the brawl took place at about am, sparking huge confusion in the University Senate Building. A source told our correspondent that the fracas developed when Dr.Employers pay state unemployment insurance taxes, which go into the Federal Unemployment Trust Fund, administered by the U. Some states take loans from FUTA if they lack the funds to pay unemployment insurance benefits for their residents. Virgin Islands will see their credit drop from 5.4 percent to 3.3 percent for 2017, making their FUTA tax rate 2.7 percent. Virgin Islands will have their 2017 FUTA credit reduced 2.1 percent, for a maximum tax increase per employee of 7. The government established the FUTA fund to cover state and federal unemployment costs and to provide loans to the states in times of high unemployment.However, if a state has outstanding loan balances for two consecutive years, FUTA will reduce its credit rate until the loan is repaid. As a result, the DOL is reducing their FUTA credit amount for the 2017 tax filing in order to recover funds still owed. All other employers in states receiving FUTA funds will receive the full FUTA credit of 5.4 percent. When a state exhausts its unemployment fund, it can borrow money from the federal government to cover its unemployment expenses.

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