With the recent increased rate of Unemployment in the wake of the Coronavirus Pandemic, questions remain as to whether additional states will see Credit Reductions in the coming years. As state trust funds are depleted, some states will be forced to take loans in order to provide required benefits. If the loans are unpaid after a period of 2 years, states become subject to Credit Reductions when loans are not repaid by November 10 of the following year.
Paylocity will continue to monitor the impacts of the Coronavirus Pandemic on the FUTA taxes in the coming years and provide updates as they become available.
Thank you for choosing Paylocity as your Payroll Tax and HCM partner.
This information is provided as a courtesy, it 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.