FUTA Credit Reduction States Released for 2018November 16, 2018
The US Department of Labor announced that employers the Virgin Islands will pay their FUTA taxes for calendar year 2018 at a higher federal unemployment (FUTA) tax rate than employers in other states
The US Department of Labor announced that employers the Virgin Islands will pay their FUTA taxes for calendar year 2018 at a higher federal unemployment (FUTA) tax rate than employers in other states because they failed to repay their outstanding federal UI loans by November 10, 2018. California was preliminarily identified as a potential credit reduction state for 2018, but they repaid their outstanding loan balance prior to November 10 exempting them from the credit reduction.
Below is the final list as published by the US DOL:
As the economy continues to strengthen, Federal Unemployment Tax Reform continues to be deferred. Questions remain as to whether the issue will continue to be a focus in the coming years. As state trust funds have again become solvent, there is no immediate need for reform. 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.