2022 futa tax rates and limits

2023 Assessments. B US employment ta rates and limits for 2021 . How can data and technology help deliver a high-quality audit? If your FUTA tax liability for the fourth quarter (plus any undeposited amounts from earlier quarters) is $500 or less, you can either deposit the amount or pay the tax with your Form 940 by January 31. Its likely that your payroll software calculates and retains your FUTA liability and automatically remits it when the time is right. Additional information for agricultural employers is available in Publication 51, (Circular A), Agricultural Employers Tax Guide and Topic No. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. Deferral of the tax payment due dates. Paying taxes, including federal income tax, social security tax, and Medicare tax, is an obligation youll need to fulfill again and again often on a monthly, quarterly, and yearly basis. As such, XYZ Sample Company's FUTA tax due on each employee's wages paid in 2022 would be $42 ($7,000 x 0.6%), or a total of $4,200 ($42 x 100). ( SSA Press Release, 10/13/2022) For 2023, the FICA tax rate for both employers and employees is 7.65% (6.2% for OASDI and 1.45% for Medicare). Temporary, part-time, and full-time employees count. The effective tax rate for 2022 is 0.6%. When your payroll software issues Form W-2 for each employee, it should send in Form 940. Click here to read our full review for free and apply in just 2 minutes. Below are federal payroll tax rates and benefits contribution limits for 2022. See the Instructions for Form 940 to determine the credit. You pay unemployment tax on the first $9,000 that each employee earns during the calendar year. The Federal Unemployment Tax Act (FUTA) is the law that requires employers to pay payroll taxes that provides unemployment compensation to workers who have lost their jobs. This field displays the flat tax limit and can only be viewed. In 2021, HB 413/Chapter 177 reduced the 2021 SUI taxes by freezing the rate schedule to Schedule A, the lowest rate schedule provided for by law, and the 2021 taxable wage base to $10,800, the same rate schedule and taxable wage base that applied in 2020. The new federal tax brackets for Canadians in 2023. Credit Reduction State: This is a state that hasn't repaid money it borrowed from the federal government to pay unemployment benefits. Employers are liable for unemployment tax in Virginia if they are currently liable for Federal Unemployment Tax. As a result, many states currently have outstanding loans to the government that will result in higher FUTA taxes being paid by employers in those states in 2023. Variable Contribution Rates. Most employers must also pay SUTA taxes (thanks to the State Unemployment Tax Act). Bulk Upload Template for Tax Pros. In our final 2022 edition of US employment tax rates and limits you will find, as of December 16, 2022, the following: Social Security wage base for 2022. Limit. Keep your small business bookkeeping sharp so you never miss a payment. CFOs can look to tax functions to help navigate economic uncertainty, Select your location Close country language switcher. Luckily, FUTA taxes aren't as high as FICA tax and the rate is just 6%. If during that same period you paid Employee John only $5,000 of wages subject to FUTA taxes, then your total is still $15,500. Before we calculate FUTA tax, lets identify the organizations and people whose wages are subject to it. FUTA taxes often come to just 0.6% of each employees annual wages, but dont ignore them. The employers under credit reduction state are usually not eligible for the full credit against the FUTA tax rate. Legislation from 2017 grants the territory's Secretary of Labor the discretion to increase the taxable wage base to as much as $10,500 if deemed necessary. IRS Announces 2022 Limits for HSAs and High-Deductible Health Plans, SHRM Online, May 2021. If an employer pays wages that are subject to the unemployment tax laws of a credit reduction state, the credit an employer may receive for state unemployment tax it paid is reduced, resulting in a greater amount of federal unemployment tax due when filing its Form 940 and including the Schedule A (Form 940), Multi-State Employer and Credit Reduction InformationPDF. The FUTA tax rate is currently 6.0% on the first $7,000 in wages per employee each year. Lets see how to calculate the FUTA tax. The Federal Unemployment Tax Act came into law after the worst recession the U.S. had ever seen, where unemployment spiked to unprecedented levels. Your email address will not be published. Have at it! Employers with a state experience rate lower than 5.4% (0.054) may receive an additional credit. Though the federal government collects tax for unemployment, the money gets distributed to each state and participating territory, which is then disbursed to residents in need. Required fields are marked *. In this guide, we break down what FUTA means, when your business must pay it and tips to make sure its done properly. And if you are not good at that kind of stuff but want to get it done on time, then hiring a professional is probably your best choice. For the household employers and agricultural employerstests, see Chapter 14 in Publication 15, (Circular E), Employers Tax Guide. This $7,000 is known as the taxable wage base. FUTA funded a program that compensates those who lose their jobs due to layoffs, and sometimes firings. The legislature did not override the governor's veto. Calculate the FUTA you owe based on your AGP. Once an employee's year to date gross earning . Responses have not been reviewed, approved or otherwise endorsed by the credit card, financing and service companies and it is not their responsibility to ensure all posts and/or questions are answered. | Terms of Use If the trust fund balance is above $900 million, but less than $1 billion on December 31, the taxable wage base is $8,000. must also pay SUTA taxes (thanks to the State Unemployment Tax Act). Your small businesss FUTA tax liability for the year is $105.60 ($17,600 * 0.006). The 2021 rates are effective Jan. 1, and remain in effect through 2021 unless Congress passes new tax legislation. If you need to know more details about FUTA rates, the federal unemployment tax act or how to do your payroll taxes properly, the best way is either reading-related guides online. When that happens, you pay whatever youve collected by January 31 of the next year. Your email address will not be published. Form 940 has you enter information about the state unemployment taxes paid to show that you qualify for the 5.4% tax credit. API Solution for Service Providers. Generally, if you paid wages subject to state unemployment tax, you may receive a credit of up to 5.4% of FUTA taxable wages when you file your Form 940. However, many employers receive a credit of 5.4% because they have paid state unemployment tax (SUTA) taxes on time. The long-term success of your business depends in part on your ability to pay your taxes on time, or to hire someone reliable to help make sure it gets done. If your FUTA tax liability for the next quarter is $500 or less, you're not required to deposit your tax again until the cumulative amount is more than $500. Theres a lot to consider here when calculating FUTA tax. The FUTA tax rate protection for 2021 is 6% as per the IRS standards. The employer may receive an additional credit if it has an experience rate lower than 5.4% (0.054). What is the 2022-2023 FUTA Tax Rate? For rates of 1.0% or greater, multiply the rate by 1.667. An official website of the United States Government. SUTA tax rates will vary for each state. Employer. In 2020, legislation (SB 55/Act 40) provided that the SUI taxable wage base remained at $7,700 for 2021. 2023 Tax rate factors. Should a state's Title XII advances remain outstanding on November 10, 2022, employers in the state will be subject to a 0.30% increase in the FUTA tax rate . Taxable on the First. The tax rate for new employers remains 1% in 2022. Email [email protected] Unemployment benefits can keep employees whove lost their jobs on their feet while they seek new work. Revised tax rate notices were issued in April 2021. The 2022 taxable wage base subject to the Social Security portion of the FICA tax is $147,000, up from $142,800 in 2021. You had one or more employees for at least some part of a day in any 20 or more different weeks in 2021 or 20 or more different weeks in 2022. In response to the COVID-19 economic crisis, most states took action in mid to late 2020 and early 2021 to minimize some of the financial concerns (i.e., increases in SUI tax expenditures) that might affect companies in the calendar year 2021. Note that FUTA tax filings are due before your small business taxes. Experience rating is affected by payroll, tax paid, timeliness of payments and UI benefits charged against the employer's account. The standard FUTA rate in 2022 is 6%, with a taxable wage base of $7,000 (per employee) or taxable wages up to $7,000. In 2022, the Medicare tax rate for employers and employees is 1.45% of all wages, unchanged . At EY, our purpose is building a better working world. Use our research to quickly and easily find the right accounting solution for your business. The good news is that many payroll services can calculate unemployment tax rates and remit unemployment taxes, as well as prepare and file Form 940, for employers. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. Wage limit . In years where there are credit reduction states, you must include liabilities owed for credit reduction with your fourth quarter deposit. In 2023, this rises to $160,200. An accounting software or service can help you avoid costly mistakes and get a clear picture of your overall finances. Many or all of the products here are from our partners that compensate us. Though FUTA tax is a payroll tax, it is different from the FICA taxes in the sense that only the employer contributes toward the FUTA taxes. If your business has employees, payroll is one of your most important financial obligations. Base tax rate: 0.10%. SUTA rates range from 0.85% - 8.65% for 2023. In some states, wages paid to corporate officers or payments for fringe benefits may not be subject to SUTA tax, but may be subject to FUTA. However, this credit will be reduced by 0.3 percent to 5.1 percent for the 2022 tax year. This means, instead of getting credit for 5.4% of the 6% tax due, employers in those states would receive a credit of only 5.1% instead. FUTA tax credit. Business credit cards can help you when your business needs access to cash right away. 760, Reporting and Deposit Requirements for Agricultural Employers. Legislation in 2020 (SB 20-207) held the SUI taxable wage base at $13,600 for calendar year 2021 with incremental increases each year thereafter until it reaches $30,600 in 2026. employers in Connecticut provide the funds for payment of unemployment benefits by paying a state unemployment tax. Or is it impossible to be 0? The tax liability for Q3 is below the FUTA tax limit by $10. For example, you pay Employee Jane $7,000 in December 2021 and another $8,500 in January 2022. Do Not Sell or Share My Personal Information. The actual FUTA base rate is 6%. Because California is subject to the credit reduction, the FUTA tax owed per employee is $63 ($7,000 x 0.9%). Generally, federal law provides employers with a 5.4 percent FUTA tax credit toward the 6.0 percent regular tax when they file their Employer's Annual Federal Unemployment (FUTA) Tax Return (Form 940). FUTA joined the Social Security Act of 1935 to create a suite of economic security programs that buoy individuals and the U.S. economy during hard times. Consequently, the SUI wage base is flexible in those states, meaning, it is indexed to the average wage or varies based on the trust fund balance. The credit reduction states for 2023 will be announced November 10, 2023. Health Savings Account limits for 2021 and 2022. Specifically, the states borrow funds from the Federal Unemployment Trust Fund. If youve ever applied for unemployment benefits, you know its managed at the state and territory level. For Quarter 1 (January to March), the FUTA Tax Payment is due by April 30. $13,000 X 0.006 = $78 FUTA Liability for Q1. Each employer's payroll for the last three fiscal years as of July 31 of the current year is divided into the applicable credit or debit balance to yield a ratio. ), A preliminary look at the 2022 state unemployment taxable wage bases. This applies to the first $7000 of taxable wages per employee. Copyright 2018 - 2023 The Ascent. For a list of legal holidays, see Chapter 11 in Publication 15, (Circular E), Employer's Tax Guide. According to the U.S. Department of Labor (US DOL), 24 jurisdictions had a flexible wage base in 2020 (the US DOL expects the 2021 information will be available by the end of December 2021). See the table on page 2. Add these two amounts together for a total of $15,500. The business stops paying SUTA tax on Barry's wages once he makes $7,000, which happens in the middle of Q2. 0.6%. Click here to know how to add FUTA taxes to pay stubs.. Access our support center for frequently asked questions and answers about 123PayStubs. You must use Schedule A (Form 940) if you paid wages to employees in more than one state or if you paid wages in any state that's subject to credit reduction. The term legal holiday means any legal holiday in the District of Columbia. remember settings), Performance cookies to measure the website's performance and improve your experience, Marketing/Targeting cookies which are set by third parties with whom we execute marketing campaigns and allow us to provide you with content relevant to you. The FUTA tax applies to the first $7,000 of wages paid to each employee throughout the year. The Instructions for Form 940 include a detailed list of these fringe advantages. Although Form 940 covers a calendar year, you may have to deposit your FUTA tax before you file your return. 759 Form 940 Employer's Annual Federal Unemployment (FUTA) Tax Return Filing and Deposit Requirements, You paid wages of $1,500 or more to employees in any calendar quarter during 2021 or 2022, or. This article currently has 61 ratings with an average of 4.5 stars. In brief, the unemployment tax system works as follows: Employers pay into the system, based on a percentage of total employee wages. or chat for any questions! Shes an expert on credit reporting, credit scoring, identity theft, budgeting, and debt eradication. This information in this communication is general in nature, and is not intended, nor should it be construed, as legal, accounting, tax or other professional advice rendered by GreenSlate, LLC. An employer who qualifies for the full tax credit will have a tax rate of 0.6%. For each employer in California, that results in an . EY helps clients create long-term value for all stakeholders. Your email address will not be published. For example, if you're required to make a deposit on a Friday and Friday is a legal holiday, the deposit will be considered timely if you make it by the following Monday (if that Monday is a business day). Annual Taxable Wage Bases (2022 and 2023) (1) The higher wage base only applies to employers assigned the maximum rate . So its in your best interest to make sure youre fulfilling your FUTA requirements and. Withholding calculation based on 2020 Form W-4. The IRS mandates employers to report the FUTA tax on Form 940, Employers Annual Federal Unemployment Tax Return. Usually, your business receives a tax credit of up to 5.4% from the federal government when it pays its state unemployment tax, effectively reducing the FUTA rate to 0.6%. Save my name, email, and website in this browser for the next time I comment. Know your quarterly average gross payroll (AGP). Federal Unemployment Taxes 2022 & 2023: What Are FUTA Taxes and How to Calculate Them, The 5 Best Banks for Small Business Loans in 2022, Publication 15-B (2023), Employers Tax Guide to Fringe Benefits. The standard FUTA rate in 2022 is 6%, with a taxable wage base of $7,000 (per employee) or taxable wages up to $7,000. If your business collected $100 in FUTA taxes in the first quarter of the year, $300 in the second quarter, and $200 in the third quarter, FUTA taxes would be due on October 31. Please help us keep our site clean and protect yourself. Also, this tax can be offset by SUTA tax payments . According to a senior Workforce West Virginia representative, to achieve the 25% savings in 2022, Governor Justice intends to reduce the 2022 SUI taxable wage base from $12,000 to $9,000, which would require legislation to implement. The tax only applies to this first $7,000. After 2026, the taxable wage base will be adjusted by changes in the annual average weekly wage. Governor Jim Justice's announcement regarding the repayment of the state's federal UI loan stated that employers are predicted to save 25% in 2022. If the trust fund balance is over $1 billion on December 31, the taxable wage base is $7,000. The taxable wage base reverted to $9,000 effective January 1, 2020 and will remain at that amount unless changed by future legislation. The Federal Unemployment Tax Act (FUTA), created in June 1939, was designed to create more jobs for Americans who were suffering during the Great Depression. in issuing 2022 SUI tax rate . In 2022, the Social Security tax rate is 6.2% for employers and employees, unchanged from 2021. The FUTA tax applies to the first $7,000 in wages you pay an employee throughout the calendar year. The Virgin Islands has carried a federal UI loan balance since 2009, and a FUTA credit reduction has applied since 2011 . In the above example, if John is paid wages in a credit reduction state lets say New York the employer will not get the full 5.4% credit on his wages for 2022. . Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Your tax software can verify that you made the proper payments, but dont wait until March to start thinking about FUTA. in issuing 2022 SUI tax rate information and notices. Establishment of special tax credits. You had one or more employees for at least some part of a day in any 20 or more different weeks in 2021 or 20 or more different weeks in 2022. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. Furthermore, employers who pay state unemployment taxes will likely be eligible for a 5.4% federal tax credit. Thats one month after the end of the third quarter, which is when the FUTA liability grew past $500 for the year. In 2022, only the first $147,000 of your earnings are subject to the Social Security tax. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. Your FUTA tax liability after the credit will be 0.6% of the first $7,000 each employee earns. This discounted FUTA rate can be used if all Unemployment Insurance taxes for 2023 have been paid in full by January 31, 2024; the employer has no out-of-state employees; and the state is not a credit reduction . EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Once an employee makes $7,000 in gross wages for the year that's it. Once your FUTA tax liability for a quarter (including any FUTA tax carried forward from an earlier quarter), is more than $500, you must deposit the tax by electronic funds transfer. It only applies to the first $7,000 they earnedthis is called the FUTA wage base. Since then, the government has added several national programs, including Medicare and Medicaid, and business taxes partially fund many of them. As a result, most states reduced the taxable wage base last year. A payroll software or service can help you save time, reduce errors, boost security and stay compliant. The Building Fund and State Experience Factor rates that make up SUTA rates in Illinois both increased from 0.525% to 0.55% and from 111% to 127%, respectively. In this case, your answer would be $120.00 ($15,500 x 0.07 = 930). Employee SUI withholding rate is 0.56% on wages up to $45,200, Employee SUI withholding rate is 0.425% on wages up to $39,800, Employee SUI withholding 0.06% on total wages. EY US Tax News Update Master Agreement | EY Privacy Statement. Legislation from 2019 (LB 428) increases the SUI taxable wage base to $24,000 for employers assigned the maximum rate. There is an additional 0.9% surtax . The taxable wage base will continue to increase as follows: 2022 $12,000; 2023 $12,300; 2024 $12,500; 2025 $12,800; 2026 $13,000; for each year thereafter, computed as 16% of the state's average annual wage. Use Schedule A Form 940 to calculate and report Multi-State Employer and Credit Reduction Information to the IRS. The FUTA tax applies to the first $7,000 of wages paid to each employee throughout the year. The tax rate for new employers is to be 3.4%. If you won't be liable for filing Form 940 in the future, see "Final: Business closed or stopped paying wages" under Type of Return in the Instructions for Form 940PDF. Under Tennessee UI law, if the UI trust fund balance on December 31 of any year is less than $900 million, the taxable wage base is $9,000. Under the Federal Unemployment Insurance Tax Act (FUTA), the 2022 federal unemployment insurance wage base is $7,000, the maximum tax is 6.0% and the maximum credit reduction is 5.4%, for a net FUTA deposit rate of 0.6%. If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience. The taxable wage base is expected to continue to increase by $300 each calendar year until it reaches $12,000. These rates do not include the Workforce Investment and Training . New employers are charged SUTA tax at the new employer rate (varying by state). There are three tests used to determine whether you must pay FUTA tax: a general test, household employers test, and agricultural employers test. by Ryan Lasker | How Much Does Home Ownership Really Cost? If some or part of those employee wages are paid wages in credit states, then you will not receive the maximum credit. Tax : Employee Rate : Employer Rate : Limit : Social Security: 6.2%: 6.2%: $147,000: Medicare: 1.45%: 1.45%: No limit: Additional Medicare.9%: 0.00%: Begins once . In 2013, the rates dropped substantially due to economic improvements leading up to 2014. Use Tax Rates and Limits to view flat tax rates for federal, state, and local taxes. If your FUTA tax liability is $500 or less in a quarter, carry it forward to the next quarter. Review ourcookie policyfor more information. Employers in the following states and jurisdictions are at risk of increasing FUTA taxes as early as 2022: California. Employers fund federal unemployment through a FUTA payroll tax. Decline Quotients. They not only make managing payroll easier, they can also make handling these crucial taxes easier as well. | Refund Policy HR Support From Abacus Payroll: Check out our HR Help Center for $11/month . In case you have deposited FUTA taxes on time for all quarters, you may file the form by February 10. You may choose to add FUTA taxes paid for an employee in their pay stubs. The 2022 FUTA wage limit of $7,000 has remained unchanged since 1983, despite increases in the federal minimum wage and annual cost-of-living adjustments over the last 36 years. To keep track of your FUTA savings, follow these tips: Filing and paying FUTA taxes is a straightforward process, as long as you have a basic understanding of how much you owe and when the payments are due. The result is that your business may have to pay more unemployment taxes for each employee until your state repays its loan balance. The State Disability Insurance (SDI) tax rate can be found by visiting Tax-Rated Employers.We will mail your DE 2088 in December and you can get a copy by logging in to e-Services for Business. The IRS publishes details of the taxability of fringe benefits in Publication 15-B (2023), Employers Tax Guide to Fringe Benefits. You may withdraw your consent to cookies at any time once you have entered the website through a link in the privacy policy, which you can find at the bottom of each page on the website. With the mass unemployment that resulted from the COVID-19 pandemic, many states have had to borrow from the Federal government in order to pay unemployment benefits. Enabled by data and technology, our services and solutions provide trust through assurance and help clients transform, grow and operate. Today, employers must pay federal unemployment tax on 6% of each employees eligible wages, up to $7,000 per employee. The 5.4% tax credit is reduced if the businesss state or territory fails to repay the federal government for money borrowed to pay unemployment benefits. The Taxable wage base for 2023 is $40,000. Employers report FUTA tax by filing an annual Form 940 with the IRS. And theres one more wrinkle to consider. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. The maximum Social Security employer contribution will increase $818.40 in 2023. Includes all the Supporting Forms Schedule-A,8453-EMP, & 940-V. So if a business owner paid 5 employees in excess of $7,000 per year it would owe approximately $2,100 in total FUTA tax. The Social Security Act of 1935 had administered unemployment benefits until FUTA was enacted in 1939. News So, in the example above, you wouldnt need to make a FUTA deposit yet. The Federal Unemployment Tax Act (FUTA), is a federal law that requires employers to pay unemployment taxes. 2020 FUTA credit reduction 10 State unemployment insurance wage base limits 11 . Return to Top. Ryan Lasker is an SMB accounting expert writing for The Ascent and The Motley Fool. employers in the jurisdiction will pay FUTA tax at a rate of 3.9%. It is a federal payroll tax that provides temporary unemployment benefits to qualified workers who lose their job through no fault of their own. Often, when your business pays state unemployment tax, your FUTA tax rate is reduced. Unemployment benefits help people whove lost their jobs stay afloat while they seek new work. The FUTA and SUTA taxes are filed on Form 940 each year, regardless if a business has an employee on unemployment insurance. Small business owners have numerous tax obligations, and if your business has employees . Average Quarterly. You can connect with Michelle on Twitter (@MichelleLBlack) and Instagram (@CreditWriter). The due date for filing the Form 940 is January 31. $7,000: Social Security Benefits. Later this . Fringe-benefit inflation adjustments and Form W-2 penalties for 2022. Additionally, positive-rated employers and . For Quarter 4 (October to December), the FUTA Tax Payment is due by January 31. However, there are a few more standards to complete in order to be considered. The SSA provides three forecasts for the wage base (intermediate, low and high cost) and all predict an increase to $155,100 in 2023. Federal Minimum Wage. So, if you paid an employee $8,000, you pay 6.0% (before state tax credits) of $7,000 in FUTA. The FUTA tax applies to the first $7,000 in wages you pay an employee throughout the calendar year. The current taxable wage base that Arkansas employers are required by law to pay unemployment insurance tax on is seven thousand dollars ($7,000) per employee per calendar year. Heres a breakdown of how to calculate your quarterly FUTA liability in this scenario: As mentioned before, the IRS allows you to carry over your FUTA payment to the next quarter if your FUTA tax is $500 or less. The FUTA Credit Reduction will appear on the Federal Form 940. You may have to do everything from securing small business loans to setting the vision for your brand. This means that an employer's federal unemployment payroll tax liability is equal to 0.6 % on the first $7,000 paid per worker; however, state unemployment taxes are due as well. The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The 2021 SUI taxable wage base increased to $9,500 for all employers, up from the $9,000 that had been in effect for the past several years for non-delinquent employers ($9,500 was assigned to delinquent employers). General employers are liable if they have had a quarterly payroll of $1,500 or more or have had an employee for 20 weeks or more during a calendar year. California's Employment Development Department (EDD) announced that the state will not pay back its Federal Unemployment Account (FUA) loans by the November 10, 2022, deadline and will be a Federal Unemployment Tax Act (FUTA) credit reduction state for 2022, with a basic reduction of 0.3% [EDD, Tax Branch News No. For example, the wage base in Florida is $7,000, so its SUTA tax can only be withheld on an employee's first $7,000, even if the employee earns $40,000 a year. The FUTA tax rate as of 2022 is 6% of the first $7,000 of each employee's wages during the calendar year. Example for 2016: Reserve Balance: Payroll: Reserve 12/31/14: $9756.40 . (for returns required to be filed in 2022) Filed/corrected On or after On or before Penalty Maximum Maximum small employer Most other business types do not subject owners pay to FUTA tax, making owners ineligible to receive unemployment benefits.