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What is FUTA and how much does a foreign-owned LLC pay for federal unemployment tax?
I keep seeing references to FUTA when reading about employer taxes for my foreign-owned LLC. I understand FICA but FUTA is confusing me. Is this separate from state unemployment tax? How much is it? I read somewhere it's 6% but then there's a credit that brings it down. Can someone explain exactly how FUTA works for a foreign-owned LLC with three employees in California?
Related Questions
I'm a foreign LLC owner hiring my first U.S. employee — what payroll taxes do I owe?
I own a single-member LLC registered in Delaware as a non-resident alien living in the UK. I just hired a full-time employee in Texas to handle customer support. This is my first hire and I have no idea what payroll taxes I need to withhold or pay. I've heard about FICA, FUTA, and federal income tax withholding but I'm confused about what applies to a foreign-owned LLC. Do I need to register with the IRS separately as an employer? And are there any extra obligations because I'm a foreign owner? I really don't want to get hit with penalties for doing this wrong.
How does FICA tax work for foreign LLC employers — do I pay both employer and employee shares?
My foreign-owned LLC in Florida has two employees. I understand I need to pay FICA taxes but I'm confused about the split. Do I withhold the employee's portion from their paycheck AND pay a separate employer portion on top? What are the exact rates for 2026? Also, is there a wage cap? One of my employees earns over $180,000 and I want to make sure I'm calculating this correctly. Does the Additional Medicare Tax apply to the employer too?
How do I file Form 941 for my foreign-owned LLC — what gets reported each quarter?
My foreign-owned LLC started paying employees in February. I know I need to file Form 941 quarterly but I'm not sure what exactly goes on it. Is it just wages and taxes withheld? Do I report the employer's share of FICA too? When are the deadlines for each quarter? I've heard the IRS is strict about late filings for employment tax returns. Can I e-file Form 941 or does it have to be mailed?
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