Do employers who only have part time workers have to pay FUTA and SUTA?

Question

Do employers who only have part time workers have to pay FUTA and SUTA?

Answer 1

I would think it would be the opposite. Only people whom employ full time workers would have to pay unemployment insurance, as part time workers are generally not elgible. I'm not totally certain, just common sense.

Answer 2

Believe it or not, that's not the question.  The Federal Unemployment Tax Administration and all states collect tax from employers.  The Federal government bails out states whose reserve for outflow of unemployment benefits falls to an unacceptably low point.  If you meet your state unemployment tax obligations on time, and if your business is not based in New York state, your business will get a break of 5.4% on the Federal {FUTA}.   You will pay in to the fund on the first 8000 of wages, salaries, tips, commissions, stipends that you pay to your employees.  For the states, it is the 7000 or 8000 in the majority of states.  THEREFORE, the employer will be paying for 2, 3 or sometimes all 4 quarters for part-time employees.  

You must send SUTA to your state employment agency every quarter and file a report.  You have to file an annual report on Form 945 with the IRS annually.  You may have to send money in each quarter to the IRS for FUTA using Form 940 depending.