If the FUTA taxes owed is less than $500, to what period can it be rolled over?

When FUTA (Federal Unemployment Tax Act) taxes owed are less than $500, the tax liability can be rolled over to the next quarter. This means that if a contractor’s FUTA tax liability for the current quarter does not exceed $500, it is permissible to carry that amount forward to the next quarter.

This provision allows small businesses and contractors to avoid making an unnecessary tax deposit if their amount owed is relatively low. It is designed to ease the burden on smaller tax liabilities by allowing them to accumulate and be addressed in the following quarter, rather than necessitating an immediate payment when the sum is less than $500.

This approach streamlines the payment process and aligns with the quarterly reporting structure of FUTA taxes, which coincides with the overall quarterly tax schedule maintained by the IRS. The other options do not align with the IRS guidelines regarding FUTA, as there is no provision for rolling FUTA taxes to the next month, or next year, and any balance less than $500 is not treated as an immediate liability due.