FUTA TAX RATE
Effective July 1, 2011 the FUTA tax rate was reduced from 0.8 percent to 0.6 percent for all employers who pay FUTA liabilities. Payrolls with check dates prior to July 1, 2011 will pay the 0.8 percent and payrolls after this date will be calculated at the new 0.6 percent. (Note: the new 2011 940 form is not yet available from the IRS).
For 2011, employers are required to make a quarterly deposit if tax exceeds
$500.00 otherwise it is paid at the end of the year.
For further detail see link below. (Page 28)
http://www.irs.gov/pub/irs-pdf/p15.pdf
How to Change FUTA Rate
Form 8109 (federal tax deposit coupon)
Effective January 1, 2011, the IRS will discontinue accepting Form 8109 deposits.
You will need to register your business and make payments electronically
on www.eftps.gov.
Exception: if liability is $2,500.00 or less for the quarter a check can be mailed with return.
1099 Repeal - H.R.4: This bill repeals the 1099 requirements for good and services over six hundred dollars that was part of Health Care Reform.
See below for details.
http://www.opencongress.org/bill/112-h4/show
