Sep 16, 2015 2:02:39 PM
By Coastal Payroll
In case any of our Coastal Payroll clients did not receive our message on the upcoming Federal Unemployment tax credit reduction, below is information of the projected year-end FUTA increase. These projected additional taxes may affect employers in seven states with up to $168 owed per employee.
A state is a credit reduction state if it has taken loans from the federal government to meet its state unemployment benefits liabilities and has not repaid the loans within the allowable time frame. A reduction in the usual credit against the full FUTA tax rate means that employers paying wages subject to UI tax in those states will owe a greater amount of tax.
Coastal Payroll recommends that you start budgeting now as we will collect the additional taxes in December. For an estimate, please refer to payroll reports found online, or contact your dedicated HCM specialist for more details.
Please don't hesitate to contact us with any questions you have regarding the 2015 FUTA credit reduction. We will send additional notifications in late November after rates are finalized by the IRS.