2014 FUTA Credit Reduction States Released
The Department of Labor (DOL) has announced the final list of states with an outstanding balance under Title XII of the Social Security Act, which affects the FUTA tax rate credits for the year. Once again, Ohio is among the states that will not receive the full credit.
What is a credit reduction state?
According to the IRS website, “A state is a credit reduction state if it has taken loans from the federal government to meet its state unemployment benefits liabilities and has not repaid the loans within the allowable time frame.”
What does this mean for Ohio employers?
Simply stated, Ohio employers will incur an additional 1.2% FUTA tax on the first $7,000 of wages per year or $84 per employee for the calendar year 2014.
We have included a link to download (Excel) the full list of the 2014 FUTA credit reduction states and loan balances from the DOL’s UI Statistics page.
For questions or additional information on this topic, please contact us.
