The Federal Unemployment Tax Act, also known as FUTA, together with state unemployment systems, provides for payments of unemployment compensation to workers who have lost their jobs.  Most employers pay both a federal and state unemployment tax.

Those employers who pay their nannies $1,000 or more in any quarter are responsible for paying FUTA.  FUTA taxes for calendar year 2011 will be calculated using two rates: 6.2% of taxable wages paid through June 30, 2011; and 6.0% of taxable wages paid after June 30, 2011, including 2012.

This tax is only paid by you; you do not withhold any part of it from your household employee's wages.  You may be able to take a credit  if you made  contributions to your state unemployment compensation system.  But to do so, you generally must pay all the required contributions for the current tax year to your state unemployment fund by April 15 of the following year.

You really do not need to worry about FUTA until the end of the year.  Your portion of FICA and FUTA, as well as the amounts you withheld from your household employee's pay throughout the year, are paid by you to the IRS annually by completing Schedule H, which you will file along with your personal income tax return.  See "Paying the Government"  for more information.