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Amendments Address Federal Unemployment Tax Deposits

The IRS has amended Reg §31.6302(c)-(3), raising the minimum threshold for Federal Unemployment Tax Act (FUTA) tax deposits from $100 to $500.  Under the new amendments, employers will be required to make a quarterly deposit of FUTA taxes only when their accumulated tax liability exceeds $500.  The regulation is effective on January 1, 2005.

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