IRS Simplifies Tax Deposit Rules For Small Businesses
WASHINGTON - The Internal Revenue Service (IRS) has increased the minimum threshold for Federal Unemployment Tax Act (FUTA) deposits, a move that will reduce a burden for more than 4 million small businesses.
Under the new rules, which went into effect Jan. 1, employers are required to make a quarterly deposit for unemployment taxes if the accumulated tax exceeds $500. The old threshold was $100.