IRS has announce the states that will be subject to the credit reduction for 2014.
A state is a credit reduction state if it has taken loans from the federal government to meet its state unemployment benefits liabilities and has not repaid the loans within the allowable time frame. A reduction in the usual credit against the full FUTA tax rate means that employers paying wages subject to UI tax in those states will owe a greater amount of tax.
California (1.2%), Connecticut (1.7%), Indiana (1.5%), Kentucky (1.2%), New York (1.2%), North Carolina (1.2%), Ohio (1.2%), and the Virgin Islands (1.2%).
Please print out the latest for 940 from irs.gov for complete instructions