Remember last year when you finally filed your Federal 940, it turned out that you owed additional funds because Illinois did not make all of the necessary required payments?
Well it will happen again in some states. Some firms in a number of areas will pay higher FUTA taxes for 2012. The 5.4% credit against the FUTA tax is reduced for companies in states that have not repaid loans from the federal unemployment fund.
Employers in Indiana will suffer a 0.9% reduction in their FUTA credit. That translates to as much as $63 extra in tax per employee. Others will be charged with a 0.6% credit cutback, up to $42 more tax per employee. Fourteen states: Ark., Calif., Conn., Fla., Ga., Ky., Mo., Nev., N.J., N.Y., N.C., Ohio, R.I. and Wis. Companies located in Ariz., Del. and Vt. will see a 0.3% drop in the credit, a tax increase of up to $21 per employee. Virgin Islands employers have a 1.5% credit reduction.
The surprising thing is that Illinois is not currently on the list. To me this is shocking.