On July 1, 2011 the federal unemployment tax (FUTA) rate is set to drop by 0.2% when a special surtax is scheduled to lapse. President Obama is pushing for it to be extended permanently; but, congress is unlikely to go along with the extension.
This means that employers will have to track wages for both half of the years since the rate will be different. This most likely won’t help employers very much this year since only the first $7,000 in wages is taxed. Most of your permanent employees will reach this limit in the first half of the year when the rate is higher.
After June, the FUTA is 6.0%, less a credit of up to 5.4% for employers that pay state jobless taxes on time, for a net of 0.6%.
Like any good CPA, I need to add a disclaimer: unfortunately, it is impossible to offer comprehensive tax info over the internet, no matter how well researched or written. And remember, I love my readers but having me bookmarked on your computer doesn’t make you a client: before relying on any information given on this site, contact a tax professional to discuss your particular situation.