USDOL Releases Final 2012 Credit Reduction States
USDOL has released the final list of credit reduction states for the 2012 Federal
940. See the link below to the DOL list. The only surprise was
Virgin Islands, they had a regular FUTA credit reduction of 0.6% for this year because
of passing 3 consecutive January firsts and not repaying by November 10. An
additional 0.9% was tacked on because of the 2.7 add-on provision, so VI employers
will have an effective FUTA rate of 2.1%. The add on rate is triggered when
the state’s tax effort as a percentage of total wages falls below levels calculated
by US DOL. The VI percent of total wages was down to 0.23% of total wages when 0.39%
was needed to avoid the additional penalty. This penalty cannot be waived by US DOL.
Employer Tax Services
This weblog is sponsored by TALX.