| Mon, 01/24/2011 - 12:55pm | |
| Maureen Weick | Can anyone tell me what the correct 2011 FUTA Tax Rate is? The IRS is listing 6.2% until Jun 30, then 6.0% thereafter. Is this 6.2% of the first $7,000. worth of wages? Wasn't it .8% for years? They've increased it? Am I reading this correctly? Thanks, in advance, for any help. |
| Wed, 01/26/2011 - 10:53am | #1 |
| Maureen Weick | Thank you everyone for your input. I forgot about the 5.4% credit, until your reminders. Now it makes sense. And unfortunately, MI is a state that borrowed from the feds, so we are paying that back. Our rate for 2010 was 1.4% (combined), however, I thought it was 1.1% (that's what it was in 2009), therefore, my calculations during 2010 were incorrect. I need to know what the correct rate will be for 2011, does anyone know that for MI or can you direct me to where I'd find it? Thanks again for the help! |
| Tue, 01/25/2011 - 9:19am | #2 |
| Rod Burton | Something else to check into. If your state unemployment fund has borrowed from the federal unemployment fund starting two or more years ago to pay benefits, the federal credit of 5.4% is reduced by .3% per year until the borrowing is paid back. In Indiana, our FUTA rate for 2010 was 1.1% net (6.2% - 5.4% + .3%) on the first $7,000 of wages and will be 1.4% for 2011. The rate above the .8% goes directly to pay down the borrowings of the state. |
| Tue, 01/25/2011 - 9:10am | #3 |
| Douglas Hutchison | There's no increase, Maureen. The rate has always been 6.2%. The rate is reduced by a 5.4% credit as long as you are paying unemployement taxes in one or more states. |
| Tue, 01/25/2011 - 8:50am | #4 |
| Lucrezia Esteban | Hi Maureen You are correct that the FUTA rate is changing July 1 from 6.2% to 6.0%. The .8% you reference is the net rate after 5.4% credit for SUTA. This credit is less if you live in a state that is a 'credit reduction' state. The wage base $7000 remains the same. |
| Wed, 07/25/2012 - 9:09am | #5 |
| David Belt | We are considering a Captive Insurance Program for our casualty insurance coverages of general liability |