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FUTA Tax
Federal Unemployment Tax Act tax, a payroll tax paid by employers to fund state workforce agencies and unemployment insurance for workers who have lost their jobs.
State Unemployment Taxes
Taxes imposed by state governments on businesses based on the amount of wages paid to employees, used to fund unemployment compensation benefits for workers who have lost their jobs.
Withholding Allowances
Claims made on a W-4 form that determine the amount of an employee’s income not subject to federal income tax withholding.
Percentage Method
A way to calculate taxes or other financial figures by applying a specific percentage rate to a base amount.
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