FUTA Credit News: Some States Facing Add-On Reductions
Posted on July 22, 2013
Employers in up to 18 jurisdictions are expected to have FUTA credit reductions for 2013, but recent developments could mean employers in up to 15 jurisdictions will face additional credit reductions in 2014.
This add-on reduction, called the Benefit Cost Rate (BCR), can affect employers in jurisdictions that have had a loan balance from the federal unemployment account on January 1 of at least five consecutive years. Employers may need to budget additional funds for these BCR add-ons, whose costs vary by jurisdiction.
Paycor will continue to monitor this development and ensure that our clients’ FUTA credit reductions are applied.