With state unemployment funds drying up, the Obama administration’s budget proposal calls for increasing the wage base for the Federal Unemployment Tax Act (FUTA) tax paid by employers.
Current law has employers pay 6.2% on the first $7,000 of earnings paid to each employee. The proposal calls for increasing that wage base to $15,000. The effect: an increase in the maximum FUTA contribution per employee from $434 to $930 per year. It would take effect in 2014 if passed.