"First figure the amount of wages you paid during the quarter that are subject to federal unemployment tax. Only the first $7,000 paid to each employee during each calendar year is subject to the tax. Next, multiply the taxable wages you have just figured by eight tenths of one percent (.8%). If $100 or less, you do not have to make a deposit. Add this amount to the tax you figure for wages subject to unemployment tax at the end of the next quarter. If more than $100, a deposit is due. For more specific information, refer to Tax Topic 759, Form 940/940EZ—Deposit Requirements (available by calling the IRS at 800/829-1040 or through the IRS Web site at http://www.irs.ustreas.gov.
Note: The FUTA tax rate isn't always .8%. The FUTA tax rate is 6.2% (see next FAQ) Generally, an employer can take a credit against FUTA tax for amounts paid into state unemployment funds. This credit cannot be more than 5.4% (resulting in a net .8% rate). Most employers who make timely unemployment tax payments to the state are entitled to the .8%."
Source: Internal Revenue Service, November 25, 1998.