Friday, September 28, 2012

HIGHER FUTA TAXES FOR MANY STATES AND A CUT FOR A COUPLE


Firms in many states will pay higher FUTA taxes for 2012. The 5.4% credit against FUTA tax is reduced for companies in states that haven’t repaid loans from the federal jobless fund by November 10th.

Employers in Indiana. and South Carolina face a 0.9% cut in their FUTA credit. That translates to as much as $63 extra in tax per employee.

Staring at a 0.6% additional tax of credit of up to $42 more tax per employee are companies in the Virgin Islands and 19 states: Alabama, Arkansas, California, Connecticut, Florida, Georgia, Illinois, Kentucky, Minnesota, Missouri, Nevada, New Jersey, New York, North Carolihna, Ohio, Pennsylvania, Rhode Island, Virginia and Wisconsin.

In addition, businesses in Arizona, Colorado, Delaware, Kansas and Vermont face a 0.3% drop in the credit...an up to $21-per-employee increase. The final word will be announced in mid-November. 

One bit of good news: The 0.2% FUTA surtax that lapsed last year was not revived.

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