California has paid off it’s unemployment account loan balance to the federal government

It took 7 years, but California has officially repaid its outstanding unemployment benefits loan advance from the federal government, and did not have an outstanding balance on November 10, 2018, hence there will be NO FUTA credit reduction for employers in California for 2018.

The standard Federal Unemployment Tax Act rate or “FUTA” rate is 6.0% on the first $7,000 of wages subject to FUTA.

Generally, Californians will receive a credit of 5.4% when they file their Form 940, which results in a net FUTA tax rate of 0.6% in 2018 (6.0% – 5.4% = 0.6%) or (.006 x 7000 = $42).

Visit the Department of Labor UI page for a list of unpaid loans, the Virgin Islands is the only remaining unpaid loan

Source: Department of Labor  |  ©2018 Copyright Payroll Masters

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