Heads up: DOL announces states where FUTA will exceed 0.6%
The Dept. of Labor has announced the 2015 FUTA credit reduction states, giving you a heads up before Form 940 is due on Feb. 1, 2016.
Once again, the FUTA tax rate is 6.0%. If you apply the regular credit of 5.4%, you get a net rate of 0.6%.
But certain states that have outstanding federal loans for their unemployment insurance trust funds will pay more than 0.6%.
Here are the affected states, with the credit reduction rate in parenthesis, followed by the final FUTA tax rate:
- California: (1.5%) 2.1%
- Connecticut: (2.1%) 2.7%
- Ohio: (1.5%) 2.1%, and
- Virgin Islands: (1.5%) 2.1%.
During 2015, Indiana, Kentucky, New York, North Carolina and South Carolina paid off their loans.
Payments to employees
As you get ready to fill out the 2015 Form 940, remember no matter what rate you pay, certain payments may be exempt from FUTA tax.
Example: Your company may not owe the tax on employer payments to Health Savings Accounts.
- Share on
Free Training & Resources
White Papers
Provided by Anaplan
Further Reading
With benefits costs climbing and new laws like SECURE 2.0 adding complexity, viewing employee benefits as a simple fixed cost is an outdate...
Here’s a common rollover scenario: An individual leaves one employer for another. The previous employer offered a 401(k) plan. The...
Employee experience – including employee mental health – has become a higher priority for many organizations, according to rese...
Heads up, Finance pros: HR might be coming to you soon for input and approval on new OBBBA benefits changes. Much of the media coverage...
In April, Arkansas Governor Sarah Huckabee Sanders signed legislation making it illegal for Pharmacy Benefit Managers (PBMs) to own or oper...
On Aug. 7, 2025, President Trump signed an executive order expanding 401(k) plans’ ability to include alternative investments – such as...
