The Federal Unemployment Tax Act (FUTA) is a U.S. law that imposes a tax on employers to fund unemployment benefits for workers who lose their jobs. This tax is primarily used to support state unemployment insurance programs, helping individuals during periods of unemployment. Employers pay a percentage of their employees' wages, up to a certain limit, to the federal government. While employees do not pay this tax, it is essential for maintaining a safety net for those who are unemployed, ensuring they have financial support while seeking new job opportunities.