Tag Archives: Form 940

FUTA credit reductions for 2014

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