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Posts Tagged Credit Reduction State

Small Business Take a Stand to Reduce FUTA Payroll Tax Cost

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%!

What is the difference in your payroll expense? (more…)

Posted in: Payroll, Payroll Taxes, Rules, Regulations and Laws

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Payroll Taxes on the Rise in Credit Reduction State

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…)

Posted in: Payroll, Payroll Taxes, Rules, Regulations and Laws

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