February 2005

New Business

FUTA deposit threshold increases in 2005

2/1/2005 -

The IRS has good news for more than four million small businesses. Under regulations recently issued by the IRS, employers will be required to make quarterly deposits for federal unemployment taxes (FUTA) only if the accumulated tax exceeds $500. The deposit threshold prior to 2005 was $100.

Since the maximum tax per employee is $56 per year, the higher threshold eliminates the quarterly deposit requirement for employers with eight or fewer employees.

Before you invest in any business, it's always a good idea to discuss the proposed venture with your advisors. If you would like assistance with evaluating a business opportunity or with legitimate tax planning, please call our office.