What was the minimum FUTA rate for the year 2016?

The minimum Federal Unemployment Tax Act (FUTA) rate for the year 2016 was indeed 0.6%. Under the FUTA, employers are required to pay a federal unemployment tax on the first $7,000 of each employee's annual income. The standard FUTA tax rate is 6% of the first $7,000, but employers can receive a credit of up to 5.4% if they pay state unemployment taxes compliant with federal requirements. This results in a minimum effective rate of 0.6% for employers. The 0.6% rate applies as long as state unemployment tax obligations are met, allowing employers to benefit from significant tax credits. Understanding the specifics of FUTA rates is crucial for payroll calculations and ensuring compliance with unemployment tax obligations.