Payroll Help

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Is My Business Exempt from FUTA and SUTA?

Most businesses are required to payfederal unemployment tax (FUTA)and state unemployment tax (SUTA). Certain organizations, including government employers, and nonprofit religious, charitable, and educational institutions are exempt from paying these taxes. To be exempt from FUTA and SUTA means no FUTA or SUTA tax will calculate when you run payrolls. For more information, seeDo Nonprofits Pay Payroll Taxes?

To mark your business exempt as a new Patriot Software customer

In the wizard, you will be asked, “Is your business required to pay employer taxes?” Select the option “My business is tax-exempt and not required to pay some employer payroll taxes” and click Continue.

继续的Company Tax Exemptionspage. To mark your business exempt from FUTA, choose “Exempt” and select the reason your business is exempt.

Enter the effective date your business became exempt from FUTA. If needed, you can enter a custom date.

For each state tax you are exempt from paying, choose “Exempt,” select the reason, and enter the effective date of the exemption.

Managing your FUTA/SUTA exemption status

After you have completed the wizard, you can manage your business FUTA/SUTA exemption status underSettings > Payroll Settings > Tax Exemptions.

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