Posts Tagged ‘FUTA’
2012 FUTA Rates for Indiana Employers
When employers pay their federal unemployment taxes (FUTA), they receive a rate credit when they pay their state unemployment taxes. The FUTA rate for employers is 6%. Employers can receive a rate credit of up to 5.4%, effectively making the FUTA rate .6%. However, employers in Indiana will be subject to a .9% reduction in their rate credit if the federal unemployment loan isn’t repaid by November 10 because of Indiana’s failure to repay the loans for four consecutive years. If the loans are not repaid, the FUTA rate for Indiana employers paying state unemployment taxes will be 1.5% for 2012. The .9% credit reduction equates to a maximum of $63 per employee.
by Melissa Merrick and Larry Brodnik, CPA | Team Members of the Tax Services Group
There are two major changes that will be occurring in 2011 regarding FUTA (Federal Unemployment Tax Act) and SUTA (State Unemployment Tax Act): (1) FUTA rate for Indiana companies will increase from .8% to 1.1%, and (2) SUTA wage base will increase from $7,000 to $9.500.