• Most employers are subject to the federal unemployment tax, though requirements vary for employers in agriculture and domestic service.

An employer is subject to the federal unemployment tax if, during the current or preceding calendar year, the organization employed one or more individuals in each of at least 20 calendar weeks, or if the organization paid wages of $1,500 or more during any calendar quarter of either year.

Variations on these requirements relate to employers in agriculture and domestic service:

• In agriculture, employers who have at least 10 or more workers in each of at least 20 calendar weeks in the current or preceding calendar year or a cash payroll of at least $20,000 during any calendar quarter in either year are subject to the tax.
• In domestic service, employers who have a cash payroll of at least $1,000 in any calendar quarter in the current or preceding calendar year are subject to the tax.

Taxable wages are defined as all remuneration from employment in cash or in kind with certain exceptions. The exceptions include earnings in excess of $7,000 in a year, and payments related to retirement, disability, hospital insurance, or similar fringe benefits.