<P> The Federal Unemployment Tax Act ( or FUTA , I.R.C. ch. 23 ) is a United States federal law that imposes a federal employer tax used to help fund state workforce agencies . Employers report this tax by filing an annual Form 940 with the Internal Revenue Service . In some cases , the employer is required to pay the tax in installments during the tax year . </P>
under the federal unemployment tax act which party pays unemployment taxes
Employers