Navigation Links
HR Strategies Informs of FUTA Tax Changes - Bringing Increases
Date:1/14/2013

(PRWEB) January 14, 2013

Over the last several years unemployment claims have been on the rise. As a result, many states have depleted their Unemployment Insurance (UI) Trust Funds and have had to take Federal Unemployment Trust Fund loans in order to pay the residents of their states UI benefits.

The Federal Unemployment Tax Act (FUTA) levies a federal tax on employers covered by a state’s UI program, with the standard being 6.0% on the first $7,000 of wages subject to FUTA. Generally, employers then receive a credit of 5.4% when they file their Form 940, resulting in a net FUTA tax rate of 0.6% (6.0%-5.4%=.6%).

The FUTA tax creates the Federal Unemployment Trust Fund, administered by the United States Department of Labor. When states deplete their own UI Trust Funds due to high unemployment they must then borrow from the Federal Unemployment Trust Fund. As with any “loan”, these funds must be repaid.

Georgia has relied on a federal loan to pay regular Unemployment Insurance (UI) benefits for more than two straight years. All employers in the state of Georgia will now see an increase in their FUTA taxes filed on Form 940 in January 2013 for wages paid to their workers in 2012. The total .6% reduction of credit on the FUTA rate will result in a total net FUTA tax rate of 1.2% [5.4% credit - .6% credit reduction= 4.8% credit; thus 6.0% FUTA tax – 4.8% credit = 1.2% total FUTA rate after credit rather than the traditional .6%] thus resulting in an additional $42 being paid in FUTA taxes per employee, with the total amount jumping up from $42 to $84 . The .3% increase may continue per year until the loans by the state are repaid to the Federal Government.
Georgia is not the only state with the outstanding loans and FUTA tax credit reductions to repay loans.

As a client of HR Strategies, what does this mean for you?

As always, we are here to consult and help manage our clients’ UI claims. By doing so, as partners, we are helping reduce the number of eligible unemployment claims, thus reducing UI taxes.

Information may also be found at: http://www.irs.gov/uac/Form-940,-Employer's-Annual-Federal-Unemployment-(FUTA)-Tax-Return

About HR Strategies

HR Strategies provides the customizable HR solutions (including but not limited to payroll, benefits, workers compensation, tax administration, regulatory compliance, HR consulting, training solutions) and expertise of a large corporation's personnel department in an affordable and effective solution. HR Strategies enables clients to reclaim time, stabilize and reduce labor costs, and stay compliant with government regulations.

Read the full story at http://www.prweb.com/releases/2013/1/prweb10308626.htm.


'/>"/>
Source: PRWeb
Copyright©2012 Vocus, Inc.
All rights reserved

Related medicine news :

1. Netmark Divulges Their Link Building Strategies
2. Flooding preparedness needs to include infection prevention and control strategies
3. Expert suggests tried-and-true strategies to strengthen your relationship
4. His Holiness Paramahamsa Nithyananda Announces Yogic Strategies for Health
5. UV-Aid Cold and Flu Prevention Added to List of Biomimicry Strategies on AskNature.Org
6. HR Strategies Holds Flexible Spending Account and Voluntary Benefit Open Enrollment
7. New stem cell research, transplant strategies show promise to improve outcomes, reduce complications
8. Longer life expectancy, aging population necessitate new strategies for prostate cancer care
9. Researchers outline effective strategies to prevent teen depression and suicide
10. RSV study shows potential for vaccine strategies to protect babies
11. Novel treatment strategies for epilepsy
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:8/16/2017)... ... August 16, 2017 , ... An August 3rd article on Reuters covers ... of a report in JAMA (the Journal of the American Medical Association). The study found ... to achieve BMIs under 30, when compared to patients with lower BMIs. At present, weight ...
(Date:8/16/2017)... GA (PRWEB) , ... August 16, 2017 , ... ... new Inc. 5000. The company ranked #4429 on the newly released, 36th annual ... list represents a unique look at the most successful companies within the American economy’s ...
(Date:8/16/2017)... Brentwood, TN (PRWEB) , ... August 16, 2017 ... ... market-leading dermatology practice partnerships through affiliations and de novo development, today announced ... practice. , Cumberland Skin Surgery and Dermatology, with offices in both Hermitage ...
(Date:8/16/2017)... ... 16, 2017 , ... Paul Vitenas, MD, FACS , is honored to ... annual list identifies the nation’s top physicians, in a variety of specialties. This marks ... top of Castle Connolly’s coveted ranking. , Castle Connolly is the nation’s trusted provider ...
(Date:8/16/2017)... ... August 16, 2017 , ... SGNA Standards of Infection Control ... cycle, both between patient procedures and before storage, is a requisite practice crucial ... to the prevention of disease transmission and nosocomial infection as cleaning and HLD.” ...
Breaking Medicine News(10 mins):
(Date:8/7/2017)... Diplomat Pharmacy, Inc. (NYSE: DPLO ) ... president, effective Aug. 7, 2017. ... other interests and will serve as president emeritus during a ... us in multiple leadership roles since he joined Diplomat with ... has provided decisive, strategic leadership which continues to benefit our ...
(Date:8/3/2017)... Aug. 3, 2017  Opioid addiction and other drugs ... healthcare costs and threatening outcomes, were problems taken on ... IVD industry that support them, met this week. This ... said that drugs of abuse, procalcitonin and acute kidney ... the organization,s 69th meeting in San Diego, ...
(Date:8/1/2017)...   CerSci Therapeutics , a non-opioid drug development ... has received notice from the National Institute on Drug ... that it has been awarded a Direct-to-Phase II Small ... 2017 with an additional $1,000,000 to follow in 2018. ... of their lead non-opioid drug candidate CT-044 to the ...
Breaking Medicine Technology: