If your total FUTA tax liability is $100 or less at the end of any quarter, what is required?

When the total Federal Unemployment Tax Act (FUTA) tax liability is $100 or less at the end of any quarter, there is no requirement to make a deposit for that quarter. Instead, the tax can be carried over to the next quarter until the total meets or exceeds the deposit threshold. This alleviates the administrative burden on smaller businesses, allowing them to manage their cash flow more effectively without the additional requirement of making small deposits for insignificant tax liabilities.

In practice, this provision serves to promote compliance and reduce unnecessary transactions for employers who may not have significant FUTA liabilities. Reporting remains required, but the financial obligation regarding payment is relaxed when the liability remains under the specified amount.