How often should FUTA taxes be paid unless the amount owed is less than $500?

FUTA (Federal Unemployment Tax Act) taxes are typically required to be paid on a quarterly basis unless the total tax liability is less than $500 for the year. This requirement leads to a clear and structured way for employers to manage their tax obligations, ensuring that the federal unemployment fund remains adequately supported through consistent tax contributions.

When the cumulative FUTA tax owed over a year reaches $500 or more, employers must make timely deposits according to the quarterly schedule. If it is less than $500, employers can carry that amount over to the next year, which allows for a bit more flexibility in managing their cash flow.

Quarterly payments help distribute the tax burden evenly throughout the year and ensure that the U.S. Department of Labor receives funding for unemployment benefits in a timely manner. This regulation aims to maintain adequate funding levels for unemployment programs that support job-seekers when they face unemployment.