Under FUTA, employers are exempted from paying unemployment taxes.

Name: Under FUTA, employers are exempted from paying unemployment taxes.
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Under FUTA (Federal Unemployment Tax Act), employers are required to pay unemployment taxes for their employees. The current tax rate is 6% of the first $7,000 in wages paid to each employee per year. However, employers may receive a credit of up to 5.4% for paying state unemployment taxes, resulting in a net federal tax rate of 0.6%.

Under FUTA, Employers Are Exempted from Paying Unemployment Taxes