Federal Unemployment Insurance Tax Cost Uncertainty
Legislation introduced in Congress is contributing to uncertainty concerning how federal
(FUTA) and state (SUI) unemployment tax costs will be impacted in 2011 and in the
years to come. Both parties have expressed concern over the imposition of the
following costs on employers as they are seen as impediments to the fledgling employment
FUTA credit reductions – FUTA credit reductions due to unpaid Title
XII loans which increase FUTA taxes are likely to occur in 24 states in 2011.
Title XII interest assessments – Interest on these loans was suspended
in 2009-2010 by the provisions of the American Recovery and Reinvestment Act.
However, because those provisions were not extended, the 29 states with outstanding
Title XII loans due to insolvent state unemployment trust funds are now assessing
employers or finding other means to pay the interest which is due by September 30,
For additional information about the approaches being considered in Congress, please
see the Tax Intelligence titled “2011 Federal Unemployment Insurance Tax Cost Uncertainty”
at the following link:
This weblog is sponsored by TALX.
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