Question: What is FUTA?
Answer: FUTA stands for The Federal Unemployment Tax Act (FUTA),
Per the Department of Labor http://workforcesecurity.doleta.gov/unemploy/uitaxtopic.asp
FUTA authorizes the Internal Revenue Service to collect a federal employer tax used to fund state workforce agencies. Employers pay this tax annually by filing IRS Form 940. FUTA covers the costs of administering the UI and Job Service programs in all states. In addition, FUTA pays one-half of the cost of extended unemployment benefits (during periods of high unemployment) and provides for a fund from which states may borrow, if necessary, to pay benefits.
If you are a private, for profit employer, you may be required to pay FUTA taxes. Most employers pay BOTH federal, and state unemployment contributions
Employers are entitles to a FUTA tax credit for UI contributions paid timely. Contact the Internal Revenue Service for information on your FUTA tax liability and filing obligations. http://www.irs.gov/localcontacts/article/0,,id=98286,00.html
Answer: Use only the UI contributions. The federal loan interest assessment and the workforce-training contribution do not qualify for FUTA credit. Your Unemployment Insurance Employer Self-Service System employer account includes FUTA credit information. Select Payment Information, and then select FUTA Credit to view the FUTA credit calculations for your account