If, at the end of a quarter, a contractor's total FUTA tax is $150, what should the contractor do?

The appropriate action for a contractor with a total FUTA (Federal Unemployment Tax Act) tax of $150 at the end of a quarter is to add that amount to the tax liability for the next quarter. This approach is valid because FUTA taxes are typically reported and paid on a quarterly basis. If the amount owed is below a certain threshold (which is often set at $500 for these payments), it can be carried over to the next quarter rather than requiring immediate payment. This method helps manage cash flow for the contractor while ensuring compliance with tax obligations.

By accumulating the tax amount into the subsequent quarter, the contractor can continue to meet their FUTA responsibilities without the pressure of a small immediate payment. This strategic decision aligns with standard practices for managing minor tax liabilities and allows for better financial planning and resource allocation in the upcoming quarter.