Question

A federal unemployment tax is levied on

Answer 1

Any business with employees are subject to a payroll tax under the Federal Unemployment Tax Act (FUTA).

Payments of unemployment compensation to workers who have lost their jobs are made possible by the Federal Unemployment Tax Act (FUTA), which works with state unemployment systems. Most businesses are required to pay both federal and state unemployment taxes. Visit the U.S. Department of Labor's Contacts for State UI Tax Information and Assistance for a list of state unemployment tax agencies. FUTA tax is not taken out of an employee's paycheck; it is only paid by the employer.

Therefore, it is imposed on any business with employees

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