Federal law that levies a federal unemployment tax on businesses with employees. FUTA funds the federal share of the costs of administering state unemployment law. In addition, FUTA covers some administrative costs of job service programs, pays one-half the cost of extended unemployment benefits (that trigger on during periods of high unemployment) and provides for a fund from which states may borrow to pay benefits temporarily when there are insufficient funds in the state’s own UI Trust Fund. 

For details visit workforcewv.org/businesses/unemployment-tax-information/employer-resources/