CT remains a credit reduction state
The US Department of Labor has released their final list of 2015 Federal Unemployment Tax Act (FUTA) Credit Reductions. As in each of the past several years, CT employers will face credit reductions measuring 2.1% above and beyond the 0.6% that is taken into escrow throughout the year.
To estimate the ADDITIONAL amount that Datapay will escrow in January, multiply the Year to Date column of the Total Federal Tax from the PAYROLL UI TOTALS report by 3.5. Using the example below, multiplying $335.99 by 3.5 totals $1,175.97. This approximates the amount that will be added to your Form 940 (unemployment tax return) on line 11. This estimate will be most accurate using your reports from your final 2015 payroll, but may be used in the interim to help estimate your future obligation.