State tax filing

FUTA tax rate: The FUTA tax rate is 6.0%. The tax applies to the first $7,000 you paid to each employee as wages during the year. The $7,000 is often referred to as the federal or FUTA wage base. Your state wage base may be different based on the respective state’s rules.   However, you may be able to take a credit of up to 5.4% against the FUTA tax, resulting in a net tax rate of 0.6%. [This is dependent on you paying your employer state unemployment tax (SUTA)].

• Household Employees: Figure the FUTA tax on the FUTA wages you pay. If you pay cash wages to all your household employees totaling $1,000 or more in any calendar quarter of 2020 or 2021, the first $7,000 of cash wages you pay to each household employee in 2021 is FUTA wages.

SUTA Tax Rate: Each state has their own employer unemployment tax rate (SUTA) as well. If you meet the criteria for paying the employer unemployment tax for a household employee then the federal rate is dependent on the fact that the employer's state unemployment tax has or will be paid as well.

• New York New Employer Experience Rate
  • If you pay cash wages totaling $500 or more in a calendar quarter to one or more persons employed as a household employee in your home, you are required to pay New York State unemployment insurance taxes. See NY Publication 27.