Seven states are on the 2014 FUTA credit reduction hit list. Employers will have their maximum FUTA credit reduced on their 2014 Form 940 because their states haven’t repaid loans they took out to shore up their state unemployment trust funds. Tip: Plan for the reduced credit by increasing your fourth-quarter FUTA deposit. Here’s the rundown:
- California, Kentucky, New York, North Carolina and Ohio: 1.2% reduction. Final FUTA rate: 1.8%
- Indiana: 1.5% reduction. Final FUTA rate: 2.1%
- Connecticut: 1.7% reduction. Final FUTA rate: 2.3%, including a 0.5% benefit cost ratio add on.