FUTA Surtax Expires

[brad_randall]

Just got the word from my accountants. I had heard this might happen, but wasn’t sure when.

As of July 1, The Federal Unemployment Tax Act surtax is no longer in effect.

The “temporary” unemployment surtax, originally placed in effect to repay federal general revenues used to provide federal unemployment benefits paid during the mid-70s recession, was extended eight times during its 35-year existence. Over that time, the tax raised $46 billion beyond what was needed to repay the federal general revenues for which it was initially enacted.

Previously, with the .2 percent surtax, the FUTA tax rate was 6.2 percent. Now the rate is 6 percent, before taking into account state unemployment tax credits.

I guess this will help to offset the .3% penalty Indiana businesses gets hit with since we’re one of the three states behind on our Federal contributions.

 

[system]

They probably just overlooked it…like they do everything else. It’s not like we have spent through all of our unemployment reserves or anything. :roll: I expect they had to let it expire so they could pass the new and improved updated FUTA ACT of x.x%! :x