Higher FUTA taxes for employers

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in Small Business Tax

The U.S. Department of Labor (DOL) has announced the final list of states where em­­ployers will owe extra federal unemployment tax (FUTA) for 2013. These states don’t qualify for the usual 5.4% credit against the 6% FUTA tax rate due to outstanding federal unemployment fund loans. The DOL listed the following cutbacks in credits:

  • 0.6% credit reduction: Delaware (maximum of $42 more per employee)
  • 0.9% credit reduction: Arkansas, California, Connecticut, Georgia, Kentucky, Missouri, New York, North Carolina, Ohio, Rhode Island and Wisconsin (maximum of $63 more per employee)
  • 1.2% credit reduction: Indiana (maximum of $84 more per employee)

Certain other states—including Arizona, Florida, Nevada, New Jersey and Vermont—have repaid loans and are entitled to a full credit for 2013.

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