FUTA tax make no sense?

[pete f]

I have filled out my 940 for the year, on line 8 it states FUTA tax before adjustments, .008 x gross taxable wages. Why do I deposit 6.7% as required if the tax is really .008? I have a big refund coming, as I did last year. I am in state where I pay State unemployment taxes, I just do not get the instructions pg 3 "How do you figure your FUTA Tax liability" Line 1 states" You owe a tax of 6.2% on the first 7000 of wages paid, then goes on to say most employers receive a max credit of 5.4% against this. Now that I write this it makes sense, I need to figure a tax of .008, not 6.7 on payroll. There are exceptions to the .008, I do not meet them. Why not just make it .008 and then collect extra if need be at the end of the year?@@# Crap, I have been paying in to much every year. Wonder what happens if I pay to LITTLE?
hehe.
OK, all done. w-2 file on line! this is great, print all w-2 plus files the w-3 auto for you. Qtr 941, done. state unploy. done. Sales tax x 2 done.
I always feel I am missing something...

[BUBBA]

Pete,
They make those forms and all other tax forms like that so people like me will always have jobs!! And, you just filled out the new simplified form 940 that replaced the old 940 and the 940 ez. Wait till you get to the new formula to compute your business telephone excise tax refund.

[Fred50]

Pete,

Where did you file your W-2's online?

[mjwalsh]

Fred50,

I think this is the link Pete is referring to. There is a registration process involved & you need to change your password every year minimum.

http://www.socialsecurity.gov/bso/bsowelcome.htm

[Fred50]

Fred50,

I think this is the link Pete is referring to. There is a registration process involved & you need to change your password every year minimum.

http://www.socialsecurity.gov/bso/bsowelcome.htm

Thanks MJ. I am not sure how much time this will save me.

I use Quickbooks to create and print W2s and the W3. I still have to send W2s to each employee. Am I missing something? I don't want to start something that isn't going to save a lot of time if I just have to do it once a year.

[pete f]

Thanks MJ. I am not sure how much time this will save me.

I use Quickbooks to create and print W2s and the W3. I still have to send W2s to each employee. Am I missing something? I don't want to start something that isn't going to save a lot of time if I just have to do it once a year.

Fred, if you pay for quickbooks payroll then maybe not worth it, I use qucikbooks but do my own ( only 3 people). The online works great, you file each w-2, put in name, address, wages earned, fill in the witholding, S/S, medicare, and can put in any local tax, then go one to the next. When you are all done you click a button, it files the w-2's, your w-3, and takes you to a PDf file to print out pages of w-2 to give to your employee, the instruction to file it( for the employee) plus a w-2 for the employer. The employee end up with 4 w-2, though it is in sheet form, they have to cut the ones they want to use off it. I thought it was really easy. I had a pile of w-2 and a w-3 paper forms from IRS to fill out just in case. I tossed them in the trash.

[mjwalsh]

I like the online print outs because the farther away carbon copies of the W2s aren't as legible.

[Fred50]

I went with the printouts from Quickbooks this year. I have too many employees and former employees to enter the info manually online.

It was easier to mail the QB printouts.