In the whole scheme of things, 0.2 percent might not seem like a whole lot, but now that the Federal Unemployment Tax Act (FUTA) rate has been lowered from 0.8 percent to 0.6 percent, employers with any number of employees should be rejoicing.
This kind of tax help is welcome news. So, what should an employer who is looking to become more efficient do to take advantage of this windfall? Well, first it’s important to make certain that the assessment amount is changed in your payroll system. You don’t want to be trying to recover overpayments later on.
Obviously, the savings accrued will be greater for some employers than others, but it’s a great opportunity to take a windfall and put it to work making your human resource management strategy more efficient. Consider engaging a human resource outsourcing company to make things even more efficient without increasing your net outlay.
It’s also important that you review and understand the IRS 940 Unemployment Tax form. You can review the instructions for completing and submitting the form here at https://www.irs.gov/pub/irs-pdf/i940.pdf.
If you have difficulty making sense of the form or if it is just too much of a hassle to make the switch to the lower rate. Or, if you want any help at all with your payroll, especially unemployment taxes, please contact Syndeo, the Wichita human resource outsourcing leader.