Question

For depositing and paying FUTA tax If due date falls on a weekend or federal/state holiday when is the payment due?

A. Add to next deposit
B. At the earliest time possible
C. One business day earlier
D. Next business day

Answer 1

If the due date for FUTA tax falls on a weekend or holiday, the payment is due the D)next business day. This allows employers to avoid penalties for late payments and to plan accordingly around tax deadlines.

Step-by-step explanation:

When the due date for depositing FUTA (Federal Unemployment Tax Act) tax falls on a weekend or a federal/state holiday, the payment is generally due the next business day.

For instance, if the FUTA tax payment is due on a Saturday, it should typically be paid by the following Monday. If Monday is a holiday, then the due date would be the next business day, which is Tuesday.

This rule ensures that payments are made in a timely fashion, avoiding possible penalties for late payments. It's important for employers to plan in advance for such occurrences, especially around federal holidays or weekends that coincide with tax deadlines.