The US Department of Labor announced that employers in one state and the Virgin Islands will pay their FUTA taxes for calendar year 2016 at a higher federal unemployment (FUTA) tax rate than employers in other states because the states failed to repay their outstanding federal UI loans by November 10, 2016.
Below is a list of States and their associated credit reductions:
|State||Credit Reduction||Additional Cost / Employee|
As the economy continues to strengthen, Federal Unemployment Tax Reform continues to be deferred. Questions remain as to whether the issue will be part of the new administrations budget plan. Paylocity continues to monitor for changes that may impact your business. We are prepared to keep you informed of legislative changes as they occur from the federal, state and municipal levels.
Thank you for choosing Paylocity as your payroll tax partner. Should you have any questions please contact your Paylocity Account Manager.
This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a payroll service provider are encouraged to seek the advice of a qualified CPA, tax attorney, or advisor.