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Nces are to the Internal Revenue Code unless otherwise noted.) General Instructions Items to Note FUTA tax rate and wage base. The FUTA tax rate is 6.2% through 2007 and the Federal wage base is $7,000. Your state wage base may be different. Services performed by inmates. Services performed by an inmate of a penal institution in a private-sector job are not subject to FUTA. This applies to services performed after January 1, 1994. Services for a government agency performed by inmates of a penal.

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