In fourteen states, the standard tax credit of 5.4 percent associated with the Federal Unemployment Tax Act (FUTA) decreased for 2013. These fourteen states have yet to repay the loans they received from the federal government in order to pay unemployment claims. Employers in the affected states must pay a FUTA rate higher than the standard (0.6 percent) on employee wages up to $7,000 (the FUTA wage base). The additional credit reduction rate varies per state on the list, which the Department of Labor (DOL) posted on Nov. 12. View the chart.

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Employers in Fourteen States Subject to Decrease in Standard Tax Credit Associated with FUTA

Dec 16, 2013

In fourteen states, the standard tax credit of 5.4 percent associated with the Federal Unemployment Tax Act (FUTA) decreased for 2013. These fourteen states have yet to repay the loans they received from the federal government in order to pay unemployment claims. Employers in the affected states must pay a FUTA rate higher than the standard (0.6 percent) on employee wages up to $7,000 (the FUTA wage base). The additional credit reduction rate varies per state on the list, which the Department of Labor (DOL) posted on Nov. 12.

 

State Name

State Code

FUTA Wage Base

FUTA Credit Reduction Rate

Maximum Additional FUTA (per employee)

Arkansas

AR

$7,000

.9% (.009)

$63

California

CA

$7,000

.9% (.009)

$63

Connecticut

CT

$7,000

.9% (.009)

$63

Delaware

DE

$7,000

 0.6% (.006)

$42

Georgia

GA

$7,000

.9% (.009)

$63

Indiana

IN

$7,000

 1.2% (.012)

$84

Kentucky

KY

$7,000

.9% (.009)

$63

Missouri

MO

$7,000

.9% (.009)

$63

New York

NY

$7,000

.9% (.009)

$63

North Carolina

NC

$7,000

.9% (.009)

$63

Ohio

OH

$7,000

.9% (.009)

$63

Rhode Island

RI

$7,000

.9% (.009)

$63

Virgin Islands

VI

$7,000

 1.2% (.012)

$84

Wisconsin

WI

$7,000

.9% (.009)

$63