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 %.
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