How often must the federal unemployment tax be remitted for larger liabilities?

The federal unemployment tax, known as FUTA (Federal Unemployment Tax Act), has specific requirements for remittance frequency based on an employer's tax liability. For employers with a larger tax liability, it is mandated that the taxes must be remitted on a quarterly basis. This quarterly remittance allows the federal government to efficiently manage and utilize the funds for unemployment benefits.

Employers whose FUTA tax liability exceeds $500 in a given quarter must make a payment by the end of the month following the close of that quarter. This ensures that larger employers, who could have a more significant impact on the unemployment trust fund, contribute more regularly, thus maintaining the program's funding.

In contrast, smaller employers with a liability of $500 or less in a quarter may not need to remit payment until their total liability exceeds this threshold, and they can then settle their payments annually. The other options, such as monthly and weekly, do not align with federal guidelines concerning unemployment tax remittances for larger liabilities, making quarterly the correct and required frequency for such employers.