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