The IRS has released a list of states that have defaulted on their 2011 Federal Unemployment Insurance Loans causing employers in these states to owe additional FUTA tax for the tax year 2011.

The following are the FUTA tax rate increases for the affected states:


0.9 percent for Michigan
0.6 percent for Indiana
0.3 percent for Arkansas, California, Connecticut, Florida, Georgia, Illinois, Kentucky, Minnesota, Missouri, North Carolina, New Jersey, Nevada, New York, Ohio, Pennsylvania, Rhode Island, Virginia, Virgin Islands, and Wisconsin

This rate will be applied to the 1st $7,000.00 that each FUTA taxable employee earned for the tax year 2011 and is due with the employer’s Federal Form 940 by January 31, 2012.

No action is required on your part, we will debit the additional FUTA amount due with your payroll. If you have questions, or would like an approximation of additional funds due, please do not hesitate to call or email. Thank you!
Phone: (704) 921-2730