Who Pays For Unemployment Insurance. However, companies can qualify for a tax credit of up to 5.4% based on their timely payment of state unemployment taxes. The basic futa is calculated by multiplying the first $7,000 an employee earns each quarter by a tax rate of 6%.

The futa tax rate for 2021 is 6% on the first $7,000 of employee wages (a max of $420 per year per employee). In the united states, benefits are funded by a compulsory governmental insurance system, not taxes on individual citizens. Both are based on risk.

/GettyImages-182396779-56a0a54a3df78cafdaa38ff0.jpg)

/paperwork-463401575-6d9959bf07fe40e1a557631f1d2ee1d5.jpg)

