Accuchex Blog

Have you read some of our blogs or our white paper: 
 "FUTA Tax Increases" in which we discuss the California FUTA tax and our concern regarding the increasing of the credit reduction rate and the effect it has had and will have on businesses? Then I have no doubt that you'll be interested in reading the announcement below by South Carolina Governor, Nikki Haley. 

Have you estimated your FUTA tax for 2015?

In 2014 California employers incurred an
additional 1.2% on FUTA taxable wages that were payable January 2015.

Being an employer in California is a challenging venture. Managing the costs involved in bringing on a new hire can seem prohibitive, as well. This is why a fiscal and operational strategy must carefully take into consideration the real and actual costs of a new hire before committing to recruiting candidates.

California labor law tends to become the benchmark for the rest of the nation and compliance is often more complex compared to most other states. Each year brings new requirements and new laws that must be complied with. Staying on top of these changes and additions can be a job in itself.

Navigating the FUTA Credit Reductions

Normally, the standard Federal Unemployment Tax Act (FUTA) rate for employers is 6 percent on the first $7,000 of covered wages. And employers generally receive a FUTA credit reduction of 5.4 percent for any state unemployment insurance (UI) taxes they must pay. This reduces the FUTA rate for most of these employers to 0.6 percent of the wages paid - up to a limit of $7,000 per worker - or $42 per employee per year.