FUTA Requirements

Use the following three tests to determine whether you must pay FUTA tax. Each test applies to a different category of employee and each is independent of the others. If a test describes your situation, you are subject to FUTA tax on the wages that you pay to employees in that category during the calendar year.

1. General Test:
   You paid wages of $1,500 or more in any calendar quarter in 2004 or 2005
   
   You had one or more employees for at least some part of a day in any 20 or more different weeks in 2004 or 20 or more different weeks in 2005
2. Household Employees Test:
   
   
3. You are subject to FUTA tax only if you paid total cash wages of $1,000 or more (for all household employees) in any calendar quarter in 2004 or 2005. A household worker is an employee who performs household work in a private home, local college club, or local fraternity or sorority chapter.
4. Farmworkers Test:
   
   You are subject to FUTA tax on the wages that you pay to farmworkers if:
   
   • You paid cash wages of $20,000 or more to farmworkers during any calendar quarter in 2004 or 2005
   • You employed 10 or more farmworkers during at least some part of a day (whether or not at the same time) during any 20 or more different weeks in 2004 or 20 or more different weeks in 2005.