01/07/2025
Year after Year!!
Our records indicate your company will be assessed additional Federal Unemployment Tax Act (FUTA) tax by the federal government for 2024 because you have employees working in one or more FUTA Credit Reduction states: California.
A FUTA credit reduction state means a state has taken loans from the federal government to meet its unemployment benefits obligations and has not repaid the loans within the allowable time frame. As a result, the usual credit against the full FUTA tax rate is reduced by 0.9% and the employer will owe a greater amount of tax in those states.
For more information about FUTA Credit Reduction, visit http://bit.ly/irs_futa_credit_reduction