Was this page helpful?
Thank you!

Comments or suggestions?



Enter Email Address (optional)
email

Receive credit toward FUTA tax

What is FUTA tax?

If your company receives credit toward federal unemployment (FUTA) tax for state unemployment tax contributions, you can set QuickBooks to apply the credit when it calculates your FUTA tax liability. When the credit is in effect, QuickBooks calculates your FUTA tax liability at a lower rate. If your company does not qualify, you pay the tax at a higher rate.

Note: Most companies qualify for a credit toward FUTA tax. To verify your eligibility for the FUTA credit, contact your accountant, your professional tax advisor, or the Internal Revenue Service.

If you are eligible for the credit

  1. Go to the Lists menu and click Payroll Item List. Shortcut

  2. Select Federal Unemployment.

  3. Click Payroll Item at the bottom of the list and click Edit Payroll Item.

  4. Click Next until you see the Federal unemployment tax rate screen.

  5. Select the lower rate.

  6. Click Next until you can click Finish.

KB ID# H_PAY_RECEIVING_FUTA_CREDIT
9/29/2016 6:33:23 AM
PPRDQSSWS403 9138 Pro 2017 edfafd