{"id":4885,"date":"2021-07-21T00:00:00","date_gmt":"2021-07-21T04:00:00","guid":{"rendered":"https:\/\/www.whitcomb.com\/manage-your-businesss-unemployment-taxes\/"},"modified":"2022-02-04T17:05:08","modified_gmt":"2022-02-04T21:05:08","slug":"manage-your-businesss-unemployment-taxes","status":"publish","type":"post","link":"https:\/\/www.whitcomb.com\/blog\/2021\/07\/21\/manage-your-businesss-unemployment-taxes\/","title":{"rendered":"Manage Your Business’s Unemployment Taxes"},"content":{"rendered":"\n\n\n
As a business owner, you\u2019re required to pay three different types of payroll taxes.<\/p>\n\n\n\n
While FICA may be easy to understand, unemployment tax calculations are easily misunderstood.<\/p>\n\n\n\n
How FUTA and SUTA taxes are calculated<\/strong><\/p>\n\n\n\n The FUTA calculation.<\/strong> The federal unemployment tax rate is 6% on the first $7,000 of each employee\u2019s income, regardless of where the company does business. In addition, employers who pay their state\u2019s SUTA taxes on time can receive a maximum credit of 5.4%, reducing the FUTA rate to 0.6%. Certain employee benefits\u2014employer contributions to health plans, pensions, and group life insurance premiums, for example\u2014are also excluded from the calculation.<\/p>\n\n\n\n SUTA taxes are more complicated.<\/strong> Tax rates and taxable thresholds (known as wage bases) vary from state to state, industry to industry, and business to business. In Oregon, for example, the first $43,800 of an employee\u2019s salary is taxed under SUTA. In Arkansas, that threshold is $10,000. In Oregon, a new employer is taxed at a rate of 2.6%, but more established businesses in that state have rates ranging from 1.2% to 5.4%. Other factors affecting SUTA tax liability include the firm\u2019s history of on-time payments to the state insurance fund and the number of former employees receiving unemployment benefits.<\/p>\n\n\n\n How to reduce your SUTA and FUTA tax bills<\/strong><\/p>\n\n\n\n As always, should you have any questions or concerns regarding your tax situation please feel free to call.<\/p>\n","protected":false},"excerpt":{"rendered":" As a business owner, you’re required to pay three different types of payroll taxes.<\/p>\n","protected":false},"author":18,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"post_statement":"","post_description":"","post_cta":"","post_button":"Read More","post_button_url":"","compliance_id":"","post_disclaimer":"","footnotes":""},"categories":[46],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/www.whitcomb.com\/wp-json\/wp\/v2\/posts\/4885"}],"collection":[{"href":"https:\/\/www.whitcomb.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.whitcomb.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.whitcomb.com\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/www.whitcomb.com\/wp-json\/wp\/v2\/comments?post=4885"}],"version-history":[{"count":1,"href":"https:\/\/www.whitcomb.com\/wp-json\/wp\/v2\/posts\/4885\/revisions"}],"predecessor-version":[{"id":4918,"href":"https:\/\/www.whitcomb.com\/wp-json\/wp\/v2\/posts\/4885\/revisions\/4918"}],"wp:attachment":[{"href":"https:\/\/www.whitcomb.com\/wp-json\/wp\/v2\/media?parent=4885"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.whitcomb.com\/wp-json\/wp\/v2\/categories?post=4885"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.whitcomb.com\/wp-json\/wp\/v2\/tags?post=4885"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}