Federal Unemployment Insurance Act (FUTA)
The Federal Unemployment Insurance Act (FUTA) gives authority to the IRS to collect fees and for the U.S. Department of Labor to pay administrative expenses of operating the state unemployment systems.
When filing an "Application for Employer Identification Number" with the IRS, indicate that employees will be hired. The IRS will mail a packet of information - there will be coupon forms for FUTA tax deposits and an Annual Report form.
For more information about the FUTA tax, forms and deposit requirements, check the IRS business resources online at www.irs.gov.