The IRS has released a list of states that have defaulted on their 2012 Federal Unemployment Insurance Loans causing employers in these states to owe additional FUTA tax for the tax year 2012.
The following are the FUTA tax rate increases for the affected states and credit reductions:
New Jersey 0.6%
New York 0.6%
North Carolina 0.6%
Rhode Island 0.6%
Virgin Islands 1.5%
This rate will be applied to the 1st $7,000.00 that each FUTA taxable employee earned for the tax year 2012 and is due with the employer’s Federal Form 940 by January 31, 2013.
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.
Beth Young, CPP
DirectPay Payroll Services