Navigation Links
HR Strategies Informs of FUTA Tax Changes - Bringing Increases

(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:,-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

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:
(Date:10/13/2017)... (PRWEB) , ... October 13, 2017 , ... Global Healthcare ... scenic Alexandria Park in Milford, NJ. This free event, sponsored by Global Healthcare ... activity. The fun run is geared towards children of all ages; it is ...
(Date:10/13/2017)... ... 13, 2017 , ... Talented host, actor Rob Lowe, is ... a new episode of "Success Files," which is an award-winning educational program broadcasted ... each subject in-depth with passion and integrity. , Sciatica occurs when the sciatic ...
(Date:10/13/2017)... ... 2017 , ... “The Journey: From the Mountains to the Mission Field”: the ... in the Philippines. “The Journey: From the Mountains to the Mission Field” is the ... She has taught all ages and currently teaches a class of ladies at her ...
(Date:10/12/2017)... ... October 12, 2017 , ... First Healthcare ... program management, will showcase a range of technology and learning solutions at the ... Convention and Expo to be held October 14–18, 2017 at the Mandalay Bay ...
(Date:10/12/2017)... ... , ... Planet Fitness, one of the largest and fastest growing franchisors and ... flagship location in Covington, LA at 401 N. U.S. Highway 190, in January of ... Depot in the Holiday Square shopping center. Its location allows it to serve both ...
Breaking Medicine News(10 mins):
(Date:9/28/2017)... Cohen Veterans Bioscience and Early Signal Foundation ... and home sensors for real-time monitoring of patients with ... nonprofit organization focused on disruptive health solutions for rare ... system to record and integrate behavioral, cognitive, physiological and ... ...
(Date:9/25/2017)... R.I. , Sept. 25, 2017  EpiVax, ... assessment, vaccine design, and immune-engineering today announced the ... on the development of personalized therapeutic cancer vaccines. ... has provided exclusive access to enabling technologies to ... Eng., MBA will lead EpiVax Oncology as Chief ...
(Date:9/19/2017)... 2017 HistoSonics, Inc., a venture-backed medical device company developing a non-invasive, robotically assisted, ... three leadership team developments today:   ... ... Tom Tefft ... Veteran medical device executive Josh Stopek , PhD, who has ...
Breaking Medicine Technology: