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…)