FUTA 

• Federal Unemployment Tax, is a tax that’s paid by all employers. However, the money collected from the FUTA tax funds the federal government’s oversight of each state’s individual unemployment insurance program. In times of high unemployment, states might even borrow from FUTA funds to provide benefits to unemployed workers in their state.

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SUTA 

• The State Unemployment Tax Act (SUTA), is a payroll tax paid by all employers at the state level. The SUTA program was developed in each state in 1939 during the Great Depression when the U.S. experienced sky-high unemployment rates.

 

State Unemployment Taxes

• are taxes assessed by states to cover unemployment benefits paid to unemployed workers who have been laid off or terminated by a company for specified reasons (Averkamp).

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TUCA

• The Texas Unemployment Compensation Act (TUCA) establishes the provisions of the Unemployment Insurance (UI) system in Texas, defines employment and establishes which types of employers participate in the unemployment tax system.

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Regular Employment

• includes occupations that are not domestic or agricultural, as explained below.

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Domestic Employment

• applies to work in the home such as nannies, gardeners, housekeepers or personal care staff.

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Agricultural Employment

• includes working with livestock and crop production, or the operation, management, conservation or maintenance of a farm or ranch.

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Withholding Tax

• A withholding tax is an amount that an employer withholds from employees’ wages and pays directly to the government. The amount withheld is a credit against the income taxes the employee must pay during the year. 

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