TAX FILE: FUTA filing eased
The Internal Revenue Service reduced paperwork for 4-million small employers in 2005. On November 30, 2004, the IRS issued final regulations (T.D. 9162) raising the threshold for quarterly deposits of federal unemployment taxes, effective January 1, 2005. Now, employers will not have to make a quarterly deposit unless the accumulated tax exceeds $500. The threshold had been $100 since 1970.