Despite the improved job market and state budgets, a few states did not repay loans from the federal government that they used to pay unemployment claims. States with these federal loans had until November 10th to repay them or employers in these states would be assessed with additional Federal Unemployment Taxes (FUTA). Unfortunately, California was one of these states for the fifth consecutive year and all employers in the state will have to pay an additional 1.5% for FUTA taxes (as much as $105 per employee). See additional states below.
| State | Additional FUTA Tax Percentage |
| California | 1.5% |
| Connecticut | 2.1% |
| Ohio | 1.5% |
The additional tax is due with the annual FUTA (940) return. Payality will provide reporting in early January calculating the total amount owed and then will collect the amount owing on or about January 22nd in order to remit it timely to the IRS.
For more information about the additional FUTA taxes (also known as the FUTA Credit Reduction), please visit:
https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/FUTA-Credit-Reduction.
