Form 940 Credit Reduction

[Golden Rocket]

Just did another 940 with credit reduction in 7 states.

Why should the employer be penalized because the state won't pay its bills?

I'm aware that not everything in the world is fair, but this one seems incredibly raucous. Getting very weary of individuals and small businesses having to take the brunt of everything because the big institutions find it easier to tag-team the powerless instead of tackling each other.

[BOB W]

NY also charges employers interest for their share of the Gov't interest charges. So NY employers and paying this issue twice.

[MichaelG]

The question you raise is valid, but the criticism is - I think - directed at the wrong level of government. Remember how the FUTA credit reduction came about. States borrowed from the feds to pay unemployment benefits. Some states either did not need to borrow or repaid the loans. The FUTA credit reduction applies to only states that borrowed but haven't paid back the feds. So, why should all federal taxpayers (employers) bear the burden for the states that still owe?