Definitions for "Federal Unemployment Tax Act"
Legislation under which federal and state governments require employers (and, in some states, employees) to contribute to a fund that pays unemployment insurance benefits.
It requires employers to pay a certain percentage of their employees' wages (up to a maximum wage limit) as a payroll tax to help fund unemployment compensation benefits for separated employees.
Federal legislation in the United States that, when combined with individual state laws, provides covered individuals with protection against loss of income resulting from unemployment.
Chapter 23 of the U.S. Internal Revenue Code, (Sections 3301-3311).