Archive for Payroll Taxes
Our payroll services clients – and all the business owners in Indiana – are paying more than the norm according to the Federal Unemployment Tax Act (FUTA). In fact, as was explained in an earlier post, this year businesses will pay 2.1% of the first $7,000 EACH employee earns. The norm is approximately .6%!
Even though the state of Indiana has been designated one of the best states for business regarding taxes, one area that doesn’t play out is with the FUTA. That’s the Federal Unemployment Tax Act. Employers pay a tax on employees’ wages to cover the state’s unemployment insurance program.
Indiana is one of several states in the position of having an outstanding loan to the federal government. In fact, according to the Congressional Research Service report dated Sept. 20, 2012, Indiana owed the federal government $1,994,007,775.40. And that means the state is designated a FUTA Credit Reduction State. (more…)
Just about every worker counts on it and almost every employer has paid it, but few understand it. What’s that? Unemployment taxes. Who pays it and how? Once you see how it works, it makes sense. The Payroll Department thinks it’s time everyone got an easy-to-understand explanation.
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