 In this presentation, we will take a look at FUTA, SUTA, and workers' compensation. FUTA being the Federal Unemployment Tax Act, and SUTA being the State Unemployment Tax Act. We're going to take a look at FUTA first, Federal Unemployment Tax Act. It is in some ways related to the State Unemployment Tax Act. The concept here being that the employer will be responsible for paying into FUTA. The rate will typically be much lower, lower. So when we consider the payroll taxes, the idea here then is that is it a payroll tax that is coming out of the paycheck? Or is it a payroll tax that's being based on the payroll of the employee but that the employer must pay? In this case, the FUTA tax is the tax that the employer must pay for payroll. And the concept of FUTA and SUTA is that at the point of employment, if someone is let go, it's going to be a type of insurance. So that if someone is let go, then there's going to have some employment insurance for the employees who are released from employee and have no fault of their own for the release. So with the type of insurance, it's a type of safety for employees who are let go for no fault of their own in order to receive some payments for that. Now note that the payments that will be given are typically given from SUTA while FUTA is generally used to pay for the executive function, meaning the administration function of the program. You may notice here that we're talking about both the State Unemployment and the federal here and that you may be asking, well, we're not usually focusing on the state stuff because states can't differ, state laws will differ. And the reason we're going to talk about the State Unemployment Tax Act and include it here and we're going to include it in many of our calculations is that it's kind of related to the Federal Unemployment Tax Act. In other words, when the legislation passed for the Federal Unemployment Tax Act, it kind of passed in a way that required states to pass their own tax. In other words, it basically said something like, you know, if the state doesn't pass a State Unemployment Tax Act, then the Federal Unemployment Tax Act will charge a higher rate. So if we look at the terminology for the Federal Unemployment Tax Act, the rates will actually say it'll have two rates. It'll basically be a rate that would be a higher rate if the state didn't implement a State Unemployment Tax Act. And if they did, then they'll get to reduce it, deduct that. So from a technical, from a practical standpoint, of course, pretty all states did implement because they would rather do it themselves. So that means that they're kind of linked, these laws are kind of linked. And therefore, the state will have some type of minimum requirements. So it's standardized in some way, given that fact. So the state could differ from state to state in some ways, but it will typically have some minimum standards in order to meet the requirement so that the food tax would be lower. So in any case, from a reporting standpoint, when we are going to record this and record the journal entry, the confusing thing about Federal Unemployment Tax and State Unemployment Tax, a typically State Unemployment Tax, as opposed to taxes like FICA, is that it comes out specifically out of the employer portion, meaning it's not coming out of the paycheck. So that's what we really want to remember here. And we'll go into this when we start to look at FUTA. We also want to consider the types of calculations for FUTA typically have some type of cap in terms of the wage cap. And it's going to have a lot lower rate than some of our other payroll taxes. So we'll take those into consideration when going into and looking through the calculation for the Federal Unemployment Tax Act and the State Unemployment Tax Act. Workers' compensation is going to be the mandatory payment by employers for workers' compensation, a type of insurance, in case employees are injured on the job. Workers' compensation insurance is legislation that provides salary replacement as well as health insurance for those workers who have injuries in the course of the job in the course of employment. Workers' compensation will be paid by the employer and it's going to be administered by the state. So we will have some differences from state to state. It will also differ in terms of the type of workers we're going to have. So clearly, if we're in a more dangerous type of situations, the type like insurance, like any type of insurance, the risk is going to be higher and therefore the workers' compensation cost to the employer will too be higher.