Credit Reduction States for FUTA

[Bees Knees]

Anyone who does payroll for clients should read the latest news article from TTB. There are a number of credit reduction states this year. Employers don't get the full 5.4% state credit for FUTA purposes if the employer pays wages in one of the credit reduction states.

http://www.thetaxbook.com/view_update.asp?1=270

[Gretel]

Thank you, Bees, for posting this. I never heard of it and I do have some payrolls. My state is not affected this year but that does not mean it won't in the future. Incredible what all is out there.

[Matt Sova]

Credit reduction

To all the new credit reduction states out there I say, "Welcome to the party!" We have been enjoying paying in higher FUTA taxes since 2009 here in Michigan.