Tax Updates

2014 Futa Reduction States:

 

There are seven states and one U.S. territory this year that have an outstanding Federal Unemployment Account (FUA) loan, based on high unemployment rates.  This requires employers in these states to owe an increased amount of Federal Unemployment Tax Act (FUTA) payments for 2014.  Here is the official list of states affected:

State

Normal FUTA Rate

2014 FUTA Credit Reduction

2014 BCR

(Benefits Cost Ratio)

Add-on

Total 2014

FUTA RATE

Additional

FUTA

Due

California

.6%

1.2%

 

1.8%

$84

Connecticut

.6%

1.2%

.5%

2.3%

$119

Indiana

.6%

1.5%

 

2.1%

$105

Kentucky

.6%

1.2%

 

1.8%

$84

New York

.6%

1.2%

 

1.8%

$84

North Carolina

.6%

1.2%

 

1.8%

$84

Ohio

.6%

1.2%

 

1.8%

$84

Virgin Islands

.6%

1.2%

 

1.8%

$84