Futa Limit For 2025

Futa Limit For 2025. Total futa tax = futa tax for employee a + futa tax for employee b = $42 + $30 = $72 if an employer is not eligible for the futa credit reduction, they would be subject to the futa tax. Employers are liable to pay futa taxes on the first $7,000 of wages paid to each employee.

The futa tax rate is 6.0% on the first $7,000 of wages, and the credit is 5.4%, bringing the tax rate for most employers to 0.6%. Discover how changes in taxable wage bases across various states can impact.