FUTA Changes for Current Tax Year 2015

Employers in four jurisdictions (3 states, 1 US Territory) are to pay higher payroll costs for 2015 because of Federal Unemployment Tax Act credit reductions, down from eight jurisdictions for 2014.

Higher federal unemployment tax costs for employers in California, Connecticut, Ohio and the U.S. Virgin Islands are to apply for 2015 because the jurisdictions had loan balances from the federal unemployment account Nov. 10 and were assessed FUTA credit reductions for 2014.  The states affected by this are listed below, along with the additional tax rate.

 

For Coastal Payroll clients with employees working in those states affected, we are required to draft the additional taxes with your December payroll and this will happen automatically.   The overall tax increase is 1.5% for most states, including California ($105 for each employee paid over $7,000 in wages in 2015). 
Our team is dedicated to staying on top of ever-changing regulations and keeping our clients in compliance.  If you have any questions, feel free to contact our Client Loyalty Team at services@coastalpayroll.com