When & How do I pay my FUTA taxes?

When you deposit your Federal Unemployment Tax Act (FUTA) tax depends on how much you have to deposit.

If your FUTA tax liability is $500 or less in a quarter, you can carry that amount over to the next quarter. You continue doing this until your tax liability is more than $500.

Once your tax liability is more than $500, you must deposit your FUTA tax by the last day of the month following the end of the quarter. For the first quarter, ending on March 31, deposit your tax by April 30; deposit your tax by July 31, for the second quarter, ending June 30; for the third quarter, ending September 30, deposit your tax by October 31; and for the fourth quarter, ending December 31, deposit your tax by January 31 of the following year.

If your FUTA tax for the fourth quarter (and any undeposited amounts from earlier quarters) is $500 or less, you can either deposit the money or pay it with your Form 940 by January 31.

Your deposits must be made using electronic funds transfer (EFT) using the Electronic Federal Tax Payment System (EFTPS). The IRS will automatically pre-enroll you in EFTPS when you first apply for your EIN and will include instructions on completing the enrollment with your EIN. To ensure that your payments are processed on time, submit your payments by 8 PM Eastern time the day before the deposit due date.