FUTA Credit Reduction Announced
There are 20 states that have outstanding loans from the federal government dating back to 2009 and earlier. Since these loans were not repaid by November 10, 2011, employers in these jurisdictions will be subject to a reduction of 0.3 percent or more in the credit for unemployment taxes that can be applied to the overall FUTA tax.
Employers in the following states will be subject to a reduction in FUTA credit on their IRS Form 940 for 2011:
Paycor will recover the FUTA amounts due by processing a onetime adjustment run for each client affected by this change. Paycor clients affected will be notified by email or letter with the amount of debit and date of debit from the bank account. The adjustment run will occur on or before December 9, 2011 with a check date of December 16, 2011. The debit from the account(s) will be on December 15, 2011.
For more information, watch this recorded webinar or contact your payroll specialist.