RI has fulfilled its obligation; CT remains a credit reduction state
The US Department of Labor has released their final 2014 Federal Unemployment Tax Act (FUTA) Credit Reductions for 2014. RI employers will be pleased to learn that the state has repaid its debt to the federal government and that no additional FUTA tax will be due at year end. CT employers will face credit reductions measuring 1.7% above the normal 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 2.83. Using the example below, multiplying $294.00 by 2.83 totals $832.02. 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 2014 payroll, but may be used in the interim to help ballpark your future obligation.
Datapay will debit this surcharge from client accounts on January 21, 2015
As in recent years, Massachusetts is not credit reduction states.