Washington ESD employer - when do you pay federal unemployment tax quarterly?

That makes sense! So if I only owe $300 in Q1, I don't have to pay until I reach $500 total?

Exactly. You can accumulate it until you hit that $500 threshold, then you pay by the next quarterly deadline.

No, it's definitely the month after each quarter ends. March 31 ends Q1, so FUTA is due April 30. June 30 ends Q2, so it's due July 31, and so on.

oh crap i think i've been doing it wrong then. should i call someone?

How does that help with IRS questions? I thought that was just for unemployment claims.

They help you get through to various government agencies when you can't reach them normally. Saved me hours of calling and redialing.

So with 6 employees making over $7,000 each, I'd pay 0.6% on $42,000 total? That's only $252 for the whole year?

That's right, assuming you stay current on your Washington ESD payments. If you fall behind on state taxes, you could lose that credit.

Good to know about the weekend rule. Do you file Form 940 annually too or is that separate?

Form 940 is your annual return that's due January 31st (February 10th if you paid all quarterly deposits on time). The quarterly payments are just deposits against what you'll owe on the annual return.

I feel you. Between Washington ESD, federal unemployment, payroll taxes, and everything else it's overwhelming.

exactly! and god forbid you miss one deadline, then you're stuck with penalties and interest

With 6 employees I definitely meet those thresholds. Better safe than sorry.

wait so if i only have 1 part time employee who works 15 hours a week, i might not owe FUTA?

If you pay that employee less than $1,500 in any quarter and they don't work 20 different weeks, then no FUTA. But check with a tax professional to be sure.

That's smart. I should probably do the same for all my tax deadlines.

Yeah, I learned the hard way after missing a deadline and getting hit with penalties. Now I'm paranoid about staying on top of everything.

The same rules apply but you'll only owe FUTA for the quarters when you actually have employees. So if you only operate June-August, you'd likely only owe for Q2 and Q3.

Makes sense. So I'd pay in July and October for those quarters.

Good point. I should probably keep electronic copies of everything too.

Definitely. I scan everything and keep it in the cloud. Has saved me multiple times when dealing with government agencies.

That's exactly why I started using Claimyr. They can get you through to government agencies without the endless hold times. Really worth it when you need answers fast.

hmm might have to check that out. tired of wasting entire days on hold

How far behind do you have to be before you lose the credit?

I believe it's if you're delinquent as of the due date for your Form 940, but don't quote me on that. Check with Washington ESD or a tax professional for specifics.

Yeah, I need to double-check with my payroll company. They handle Washington ESD but I'm not sure about the federal side.

Most full-service payroll companies handle both, but always verify. It's your business on the line if they mess up.

Just the first $7,000 per employee per year. So once an employee makes more than $7,000, you stop paying FUTA on their additional wages for that calendar year.

Got it, thanks! That makes it a lot more manageable than I thought.

Is that free to use?

Yes, completely free. You just need to register with the IRS first and they'll send you a PIN by mail. Takes about a week to get set up.

I've been in business for 3 years so probably too late for that, but good to know for future reference.

Yeah, it's only for the first calendar year you pay wages. But every little bit helps when you're starting out.

Thanks for the tip! I'll definitely check that out.

No problem. It's dry reading but has all the official info you need.

How much are the penalties typically?

depends how late you are but can be pretty steep. better to just stay on top of the quarterly schedule

Did they help you with both state and federal questions or just one?

They helped me get connected to the right departments for both. Saved me tons of time compared to calling directly.

That's exactly right. And remember the $500 minimum threshold - you can carry forward smaller amounts until you hit that.

Perfect. This thread was way more helpful than trying to decipher the IRS website!