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Oct 22 2012
FUTA Tax Rates May Increase in 19 States

Posted in tax

Currently there are 19 states that have outstanding loans for at least two years under the federal unemployment insurance program.  As a result, employers in these specific states may not be able to claim the maximum amount of state unemployment tax credits on their 2012 federal unemployment tax (FUTA) return.

States that are potentially effected by the reduced credit are as follows:  IN (.9%); AR, CT, FL, GA, KY, MO, NV, NJ, NY, NC, OH, RI and WI (.6%); and AZ, DE and VT (.3%).

There was a recent state tax credit reduction applied to MI which affected, 2011.  Once MI repaid their loans (in 2012) the allowable rate returned to it's normal level.

If you have employees working in these states please be aware that there may be an added cost resulting from the reduced state unemployment tax credit.  In the event that loans are repaid, the respective states should be unaffected in the year of repayment.

Last Updated by Mike on 2012-10-22 08:21:42 AM

Thank you for visiting our blog.  While we work hard to keep our content informative and accurate, should you come across an apparent error or misstatement we would appreciate your feedback so we are able to correct the post.  Please be aware that certain information contained in a post may be time sensitive, and as often is the case, can become outdated.

The content of our blog often represents our professional opinion, but it may not apply to your specific set of circumstances, please contact your tax professional for more information.  What you find on this blog should not be taken as counsel and nor should it be considered as fact or absolute.

Comments on this website are the sole responsibility of their writers and the writer will take full responsibility, liability, and blame from any libel or litigation that results from something written in or as a direct result of something written in a comment.

Thank you for visiting our blog.  While we work hard to keep our content informative and accurate, should you come across an apparent error or misstatement we would appreciate your feedback so we are able to correct the post.  Please be aware that certain information contained in a post may be time sensitive, and as often is the case, can become outdated.

The content of our blog often represents our professional opinion, but it may not apply to your specific set of circumstances, please contact your tax professional for more information.  What you find on this blog should not be taken as counsel and nor should it be considered as fact or absolute.

Comments on this website are the sole responsibility of their writers and the writer will take full responsibility, liability, and blame from any libel or litigation that results from something written in or as a direct result of something written in a comment.

Thank you for visiting our blog.  While we work hard to keep our content informative and accurate, should you come across an apparent error or misstatement we would appreciate your feedback so we are able to correct the post.  Please be aware that certain information contained in a post may be time sensitive, and as often is the case, can become outdated.

The content of our blog often represents our professional opinion, but it may not apply to your specific set of circumstances, please contact your tax professional for more information.  What you find on this blog should not be taken as counsel and nor should it be considered as fact or absolute.

Comments on this website are the sole responsibility of their writers and the writer will take full responsibility, liability, and blame from any libel or litigation that results from something written in or as a direct result of something written in a comment.