What Are F.O.C.U.S. Points?

The F.O.C.U.S. Points Newsletters are about getting you information when it matters.  These will be short updates, tips, or actions items to put into ACTION! These are changes you can make NOW in what and how you do business to save money, time, and improve your bottom-line.

So, whenever we happen upon an item, issue, or tip that can impact your business, we'll pass it along.

Did You Know – FUTA Regulation Change Eases Rules return to top

Beginning January 1, 2005, the IRS exempts employers from depositing FUTA taxes until their FUTA tax liability exceeds $500. This new regulation applies for periods ending after December 31, 2004. The threshold for periods ending December 31, 2004 or prior is $100.

Employers generally deposit FUTA taxes on a quarterly basis. Under this new regulation, employers whose accumulated FUTA taxes (Current Quarter FUTA taxes plus undeposited FUTA taxes for prior quarters) are less than $500 (for periods ending in 2005 or later) aren't subject to the deposit requirements until the quarter in which accumulated FUTA taxes exceed $500. (Reg. § 31.6302(c)-3(a)(2)) Also, if total FUTA tax liability for a calendar year exceeds deposits for the year, the employer may pay the balance with the annual return if the total due does not exceed $500. Otherwise, the requirement remains that the balance must be timely deposited with an authorized financial institution. (Reg. § 31.6302(c)-3(a)(3))