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Returning Member
posted Feb 21, 2022 4:08:57 PM

Schedule H calculation error for 2021 taxes for FUTA?

Preparing Schedule H for 2021 Fed tax filing. Calculation for FUTA [Federal Unemployment Tax Act] in TurboTax seems incorrect at 0.6% when the tax rate for 2021 is 6%.  This seems to under-report FUTA tax owed by a factor of 10. Anyone else seeing this error? I've updated the software as of today. 

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1 Best answer
Level 2
Feb 21, 2022 4:21:35 PM

If your state requires that you pay unemployment, you get credit for that unemployment with the IRS.  The default rate is then the .6%

2 Replies
Level 2
Feb 21, 2022 4:21:35 PM

If your state requires that you pay unemployment, you get credit for that unemployment with the IRS.  The default rate is then the .6%

Returning Member
Feb 21, 2022 4:38:21 PM

Aha! You are correct about that as California is one of those states so the 0.6% net FUTA tax rate is correct. Thank you!