Alabama Tax Assessment Announced to Avoid Loss of FUTA Credit
Posted on August 11, 2011
On August 8, 2011, the Alabama Department of Industrial Relations director Tom Surtees announced that letters will be mailed on August 10, 2011 to employers statewide informing them of a 0.07% unemployment compensation interest assessment based on their 2010 taxable wages. Click here for a copy of the news release.
“Alabama is one of over thirty states that have been borrowing from the U.S. Treasury. Businesses in several of those states have faced a 0.3% loss of their Federal Unemployment Tax Act (FUTA) credit for interest not paid on time,” said Surtees. “We want to prevent this loss of credit for our Alabama employers and this assessment is the means to go about doing that.”
This tax assessment will be used to repay interest owed to the U.S. Treasury. State law requires that interest due on these outstanding loans be repaid by assessments to employers. These assessment payments are due on September 9, 2011. The assessment totals approximately $5.60 for each employee.