Tax Information For Employers

FUTA Tax Credit

The Federal Unemployment Tax Act (FUTA) allows employers a credit against their federal unemployment tax liability for contributions paid under the state unemployment compensation laws. If the employer does not pay the state taxes, the entire amount of federal unemployment tax must be paid in full. However, payment of the federal unemployment tax does not relieve the employer of his obligation for paying the state taxes.

Once an employer is deemed liable under the SCES Law, the law requires the employer to file quarterly contribution reports and to pay the assessed taxes.