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:3/25/2017)... ... ... Swissray is pleased to announce the release of the ELITE DXA, a new bone ... scan window, which is more than double that of existing bone densitometers. Historically, subjects ... an accurate total body bone density or body composition study. The ELITE DXA ...
(Date:3/24/2017)... ... 2017 , ... Digital Scientists, a software innovation lab specializing in web design ... Greenville, South Carolina location. The lab has set up shop at the renowned ... with South Carolina clients for years from our office here in Atlanta,” explains Digital ...
(Date:3/24/2017)... ... March 24, 2017 , ... Mlynarek Insurance Agencies, a ... and business owners across eastern Michigan, is connecting with the Oxford/Orion FISH Food ... difficulties. , The Oxford/Orion FISH Food Pantry works to ensure homeless, hungry, and ...
(Date:3/24/2017)... (PRWEB) , ... March 24, 2017 , ... ... two panels at the Advanced ERISA Benefit Claims Litigation seminar in Chicago, Illinois. ... the Administrative Record, The majority of cases litigated under ERISA involve claims for ...
(Date:3/24/2017)... ... March 24, 2017 , ... Judy Buchanan, co-owner of ... Frederick, MD. Judy says, “I am passionate about sharing Reiki as a holistic, ... difficult and challenging time.” , A Certified Medical Reiki™ Master trained by Raven ...
Breaking Medicine News(10 mins):
(Date:3/24/2017)... India , March 24, 2017 A ... market has been growing rapidly as the global sales of Adcetris ... the growth in the antibody drug conjugates market is driven by ... of cancer and wider therapeutic window offered by ADCs. ... Browse 3 Tables and 94 ...
(Date:3/24/2017)... Research and Markets has announced the addition ... report to their offering. ... The report provides separate comprehensive analytics for the US, ... , Asia-Pacific , Latin America , ... period 2015 through 2022. Also, a six-year historic analysis is provided for ...
(Date:3/24/2017)... , March 23, 2017  HealthMine surveys with ... 2017 revealed that health plan members want help from ... to stay engaged in their health, 2) help closing ... integrated platform for health and 5) relevant, real-time guidance. ... and lowering healthcare costs. A ...
Breaking Medicine Technology: