Will You Be Paying Higher Federal
Unemployment Taxes This Year?
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Depending on the state in which your business is located, you may be paying an additional $63-$105 per employee in Federal Unemployment Taxes (FUTA) in 2014. That's because the federal government will be reducing the existing 5.4% FUTA credit for businesses in states that have not yet repaid loans from the federal jobless fund by November 10.
The biggest hits are coming in Indiana and South Carolina, where the FUTA credit will be cut 1.5%, resulting in additional payments of approximately $105 per employee. Companies in Arkansas, California, Connecticut, Georgia, Kentucky, Missouri, New Jersey, New York, North Carolina, Ohio, Rhode Island, and Wisconsin could see a 1.2% reduction in the FUTA credit, which means an extra $84 per worker. Delaware employers may see a 0.9% cut in the credit, costing them an additional $63 per worker.
For more information on potential FUTA credit cuts in your state, or on any other tax issue, please contact us.
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