Unemployment Tax Rates

The Federal Unemployment Tax Act and the State Unemployment Tax Act were established in 1939 to fund unemployment insurance and job programs. Generally, churches are not required to pay FUTA under their 501(c)(3) status. Requirements for SUTA are set on a state by state basis.

Access Unemployment Tax Rates

To access from the Button Bar, go to Data Setup > Unemployment Tax Rates

Tax Rates and Wage Bases

  • Select a Year with the drop down.

  • Social Security and Medicare are shown here, and apply to all employees except those with the Minister box checked in the Employee file.

  • Enter the Percentage and Wage Base.

    • As shown in the screen capture above, the FUTA would be calculated at 0.6% of the first $7,000 on annual earnings.

  • Refer to your state government to find the current SUTA rate and conditions.