Continued efforts are being made to secure this beneficial change in the law. This tax is paid entirely by the employer, and is NOT withheld from the camp employee's paycheck. Taxes are reported on IRS form 940 due January 31 of each year. Thirdly, the American Camping Association secured an exemption from FUTA for seasonal employment of all full-time students who work at camp for less than 13 weeks per year. A qualifying student must have a bona fide intention to return to a full course of study after leaving camp employment.
States impose unemployment taxes independent of the federal government.
As a general rule, states follow the federal lead in granting exemptions, though they are not required to do so. Those that do often have laws which provide for blanket adoption of federal exemptions. Since there are some exceptions, camps should contact their state labor department to ascertain SUTA tax liability. Don't hesitate to question your state labor department if they do impose SUTA liability, as the Association has discovered state tax officials to be frequently unaware of the federal exemption for camps. Withholding of Federal Income Taxes Except as noted below, most camp employees are subject to withholding of federal income taxes.