Client Write-Up

Federal Umemployment Tax (FUTA)

In rare instances a customer might need to change the FUTA tax rate to 6% from .6%. The only know time this can happen is when the client only has Officers of the corporation and they have opted out of State Unemployment Tax. The federal umemp tax is 6%, but when you pay State UNEMP you ger a 5.4% credit with the Federal UNEMP bringing the Federal Rate to .6% and that is how CWU calculates it. This change is made in Setup> System> Calendar Years and it affects all clients on that computer. This means you would have to dedicate one computer just to doing this client. In the one instance I know of, she will just calculate the rate herself.


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