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September 12, 2023

What is a Futa?

Unlike Social Security and Medicare payroll taxes, which impact both employees and employers, FUTA only impacts businesses. While it may not be top of mind for most business owners, correctly calculating, paying, and filing these unemployment insurance taxes can help prevent expensive penalties from the IRS. In this article, we’ll break down what a futa is and explain the different steps of FUTA filing and payments.

What is a Futa?

A futa is a hermaphrodite character in Japanese anime or manga that shows both female and male primary genitalia. It is a form of hermaphroditism, commonly used in pornographic works such as anime and manga, although it can also be seen in more mainstream works. It is often shortened to futanari when used in the context of anime and manga.

Do all employers have to pay FUTA?

Generally, most American employers must pay FUTA payroll taxes on their employees’ wages. However, there are a few exceptions to this rule, including household employees (nannies and housekeepers) and agricultural employers. Additionally, if you haven’t paid your employees more than $1,500 during any quarter of the previous two years or haven’t had an employee for 20 or more weeks in either of those quarters, you are not required to pay FUTA.

Another important thing to keep in mind is that FUTA and SUTA (state unemployment taxes) work together to create federal and state unemployment insurance funds. If you pay SUTA on time, you can receive a credit toward your FUTA tax rate, which can reduce your total FUTA liability.