Higher Federal Unemployment Taxes

//Higher Federal Unemployment Taxes

Higher Federal Unemployment Taxes

As a result of previous loans taken from the Federal Unemployment Tax fund that remain unpaid, Ohio, Kentucky and Indiana employers owe more payroll taxes in 2013. The unpaid amounts result in the federal government reducing the credit given to employers in these states and subsequently raising the net federal unemployment tax rate. Details by state are as follows:

State               Reduction %              Maximum Wages Taxed     Additional Cost*
Ohio                     0.9%                             $ 7,000                            $63 per employee

Kentucky             0.9%                             $ 7,000                            $63 per employee

Indiana                1.2%                             $ 7,000                            $84 per employee

*The additional cost calculation assumes that the employees have reached the FUTA Maximum wage amount for 2013 of $ 7,000. If a particular employee has not reached the maximum amount, the cost is calculated by multiplying their wages times the reduction %.

Please contact our office at 513-576-6770 or email rcupp@donohoocpa.com if you have any questions.

By |2017-11-17T12:47:40-05:00November 17th, 2013|Financial News|0 Comments

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