The Federal Unemployment Tax Act (F.U.T.A.) rate changed.

On July 1, 2011 the F.U.T.A. tax rate decreased by 0.2%.

The Federal Unemployment Tax Act (F.U.T.A.) rate was 0.8% of the first $7,000 of wages paid to each employee from January 1through June 30 for the current year. The new rate of 0.6% is applied to each employee's wages that did not reach $7,000 by June 30. These rates assume that the employer is receiving full credit for state unemployment payments. Otherwise the rates are 6.2% and 6% respectively.

Users of QuickBooks Payroll and Assisted Payroll:

If you have not done so already, you must download Payroll Update 21112.

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