Unemployment Insurance

The FUTA (Federal Unemployment Tax Act) provides for a UI (Unemployment Insurance) tax a 6.2 percent rate with a wage base of $7,000 per employee per calendar year maintaining an acceptable UI program that meet or exceeds all federal requirement and mandates, Indiana employers can receive a credit of 5.4 percent against the FUTA liability even though the employers Indiana UI tax may be less.

The net FUTA tax rate is 0.8 percent payable on covered wages up to the calendar year $7,000 base. The federal tax liability is, therefore, up to %56 for each employee per calendar year.

Employers Unemployment Information

Source: Indiana Department of Workforce Development, August 2005