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Federal Unemployment Tax Act (FUTA)


   

The Federal Unemployment Tax Act (FUTA):

  • Provides workers payments for a given period of time or until they find a new job, if job was terminated through no fault of their own

  • Unemployment insurance is based on federal and state systems, with employers receiving a credit against the federal tax for state taxes paid

  • Which employees are eligible for compensation, the amount they receive, and the period of time benefits are paid are determined by a mix of federal and state law

More information about the Federal Unemployment Tax Act (FUTA).

 

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