Dec. 28, 2004: IRS Rule Change Aids Small Businesses
The maximum amount the IRS collects from employers per employee is $56 per year, if the employer timely made state unemployment tax payments. The current $100 threshold requires most employers with two or more employees to make at least one federal tax deposit per year. Raising the requirement to $500 will reduce the burden for employers with eight employees or less by eliminating their requirement to make up to four FUTA tax deposits yearly.
Publication date: 12/27/2004