We cant get rid of money, silly, how else would the government tax us?
But if it's free it doesn't cost anything right?
No, but the corporations that have replaced human labor with robotic labor will be making such windfall profits, they will be able to shoulder the entire burden while still making record profits.
a general tax on firms for unemployment compensation!
We already have that at both the state and federal level
no, we don't; or we would not have this issue.
Yes , we do.
Topic No. 759 Form 940 – Employer's Annual Federal Unemployment (FUTA) Tax Return – Filing and Deposit Requirements | Internal Revenue Service
Topic Number: 759 - Form 940 – Employer's Annual Federal Unemployment (FUTA) Tax Return – Filing and Deposit Requirements
Who Must File Form 940?
Most employers pay both a federal (FUTA) and a state unemployment tax. There are three tests used to determine whether you must pay FUTA tax: a general test, household employees test, and farmworkers employees test.
Under the general test, you're subject to FUTA tax on the wages you pay employees who aren't household or agricultural employees and must file
Form 940 (PDF),
Employer's Annual Federal Unemployment (FUTA) Tax Return, for 2017 if:
- You paid wages of $1,500 or more to employees in any calendar quarter during 2016 or 2017, or
- You had one or more employees for at least some part of a day in any 20 or more different weeks in 2016 or 20 or more different weeks in 2017. Count all full-time, part-time, and temporary employees. However, if your business is a partnership, don't count its partners.
If you sold or transferred your business during the year, and one of the conditions above applies, you must file Form 940. However, don't include any wages paid by the predecessor employer on your Form 940 unless you're a successor employer. For details, see "Successor employer" in the
Form 940 (PDF). If you won't be liable for filing Form 940 in the future, see "Final: Business closed or stopped paying wages" under
Type of Return in the
Form 940 (PDF).
For the household employees and farmworkers tests, see Chapter 14 in
Publication 15,
(Circular E), Employers Tax Guide. Additional information for household employers is available in
Publication 926.pdf,
Household Employer’s Tax Guide and
Topic No. 756. Additional information for agricultural employers is available in
Publication 51,
(Circular A), Agricultural Employer’s Tax Guide, and
Topic No. 760,
Reporting and Deposit Requirements for Agricultural Employers.
FUTA tax rate: The FUTA tax rate is 6.0%. The tax applies to the first $7,000 you paid to each employee as wages during the year. The $7,000 is often referred to as the federal or FUTA wage base. Your state wage base may be different.
Generally, if you paid wages subject to state unemployment tax, you may receive a credit of up to 5.4% when you file your Form 940. If you're entitled to the maximum 5.4% credit, the FUTA tax rate after credit is 0.6%. Generally, you're entitled to the maximum credit if you paid your state unemployment taxes in full on time, and the state isn't determined to be a credit reduction state. See the Instructions for Form 940 to determine the credit.
Credit Reduction State: This is a state that hasn't repaid money it borrowed from the federal government to pay unemployment benefits. The
Department of Labor runs the loan program and determines the credit reduction states each year; see
FUTA Credit Reductions for more information. If an employer pays wages that are subject to the unemployment tax laws of a credit reduction state, the credit an employer may receive for state unemployment tax it paid is reduced, resulting in a greater amount of federal unemployment tax due when filing its Form 940 and including the
Form 940, Schedule A (PDF),
Multi-State Employer and Credit Reduction Information. You must use Form 940, Schedule A if you paid wages to employees in more than one state or if you paid wages in any state that's subject to credit reduction.
State Unemployment Tax Rates
