Sterling Heights, Michigan (PRWEB) November 30, 2015
UHY LLP, the fifth largest accounting firm in Southeast Michigan reports, the US Department of Labor announced on Nov. 10, 2015, that employers in California, Connecticut, Ohio, and the Virgin Islands will be paying their FUTA taxes for calendar year 2015 at a higher federal unemployment tax rate than employers in other states. The increased FUTA rate for these three states and one jurisdiction is due to the states' failure to repay their outstanding federal unemployment insurance loans by Nov. 10, 2015.
Generally, the net FUTA tax rate is 0.6% for every state, but the effective FUTA tax rate will be 2.1% for California, Ohio, and the Virgin Islands for 2015. Connecticut has an effective FUTA tax rate of 2.7% for 2015 because the state qualified for the Benefit Cost Rate (BCR) add-on and did not request the BCR waiver that had a July 1, 2015 deadline. There were originally eight states facing a potential FUTA tax rate increase for 2015; however, Indiana, Kentucky, New York, North Carolina, and South Carolina all repaid their outstanding balances before the Nov.10 deadline.
Keep in mind that the additional 2015 FUTA tax is considered incurred in the fourth quarter and is due and payable before Feb. 1, 2016. The FUTA tax is reported on IRS Form 940 and Schedule A for 2015.
For more information or questions on this topic, please contact your professional at UHY LLP in Detroit 313 964 1040, Farmington Hills 248 355 1040 or Sterling Heights 586 254 1040, or visit us on the web at http://www.uhy-us.com.