Wednesday, December 19, 2012

FUTA Increase

I have just found out that employers are going to see an increase in their FUTA[unemployment] tax retroactively to Jan 1 2012.

What apparently happened is that the state failed to repay their outstanding Federal Unemployment loan by the due date.

What this means as best as I can tell is the rate prior to this was .6% on the first $7000. In effect the payment per employee will double.

Scott Hauge


Small Business California

2311 Taraval Street

San Francisco, CA 94116


Dear Tax Filing Client,

The US Department of Labor has confirmed that 18 states and the Virgin Islands will pay higher FUTA rates for the 2012 calendar year. Employers in affected states will pay FUTA taxes for the 2012calendar year at a higher rate since the state failed to repay their outstanding federal UI loans by the federal due date. This tax increase is retroactive to January 1, 2012. The information below is from a payroll company Payality. I suggest you talk to your payroll company to see how they will handle this

The increased FUTA taxes will be due along with fourth quarter 2012 federal unemployment tax deposits.

State Net 2012 FUTA Rate

Arizona 0.9%

Arkansas 1.2%

California 1.2%

Connecticut 1.2%

Delaware 0.9%

Florida 1.2%

Georgia 1.2%

Indiana 1.5%

Kentucky 1.2%

Missouri 1.2%

Nevada 1.2%

New Jersey 1.2%

New York 1.2%

North Carolina 1.2%

Ohio 1.2%

Rhode Island 1.2%

Vermont 0.9%

Virgin Islands 2.1%

Wisconsin 1.2%


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