FUTA Credit Reduction Update

FUTA Credit Reduction Update

21 States will be added to the FUTA credit reduction list due to failure to pay back on loans from the federal government to continue paying unemployment benefits.  After a state has had an outstanding Title XII loan balance for two consecutive years on January 1, employers in that state face a 0.30% reduction in the FUTA credit if the loan is not paid back by November 10 of that same year. 

http://www.treasurydirect.gov/govt/reports/tfmp/tfmp_advactivitiessched.htm

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