Browse federal, state and local payroll tax codes.
FUTA is an employer payroll tax. It is not withheld from employee pay. A statement may show the employer’s cost for information, but that amount should not be subtracted when you reconcile take-home pay.
How to read this entry
Use the meaning Federal unemployment tax alongside the column heading. An earnings amount, an employee deduction and an employer-cost memo can have different effects even when their labels look similar.
Example on a pay statement
If a statement shows $1,500 gross, $250 employee taxes and $100 employee deductions, net pay is $1,150. A separate $9 employer FUTA cost does not reduce that net to $1,141.
Examples illustrate the checking method. They are not a personal tax calculation or a promise of a particular benefit.
What to check with payroll
If a FUTA-labelled line actually reduces net pay, ask payroll to explain and correct the classification or deduction.
Compare related entries
Read the federal, state and local payroll tax codes guide to compare the entries in this part of your statement. Use the full pay stub code directory when a second abbreviation is unfamiliar.
Reference and scope
Official guidance on federal, state and local payroll tax codes provides background on the underlying rules. The actual plan, tax year, jurisdiction and payroll record determine how the rules apply.