How Do My Premiums Paid To Tennessee Affect My Federal Unemployment Tax (Futa)?

In order to be eligible for a 5.4 percent offset credit against the 6.2 percent FUTA tax that you pay to the IRS, you must pay state unemployment insurance premiums for the previous year in full by January 31. If the state premiums are not paid, you must pay the full 6.2 percent FUTA tax. However, this will not relieve you from state premiums.

The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.

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