Richard Pon, CPA, CFP - Tax Expert

View Original

2025 Employer Federal Unemployment Tax Is Rising

Unemployment taxes are paid by employers and not by employees.

 The employer Federal unemployment tax which is correctly 0.6% on first $7,000 of employee wages (or essentially $42) is increasing by $63 to $105 per employee in 2025 since California has not repaid its Covid unemployment loan from the Fed.

 So an employer with 10 employees will be paying $630 more in FUTA taxes in 2025.