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).
Source: Department of Labor | ©2018 Copyright Payroll Masters
Payroll Masters is not a licensed insurance broker or agent, law firm or accountancy and does not provide professional or legal advice and therefore Payroll Masters assumes no responsibility for claims arising from the use or implementation of any information proffered here or verbally. This document has been provided for informational purposes only and is not intended and should not be construed to constitute legal or financial advice. Please contact your attorney, CPA, insurance agent or financial advisor in connection with any fact-specific situation in which you intend to take significant employment action. Reader shall and does hereby indemnify, defend, and hold harmless Payroll Masters from and against any and all claims, demands, losses, costs, expenses, obligations, liabilities, damages, recoveries, and deficiencies, including without limitation interest, penalties, and reasonable attorney fees and costs, that either party may incur or suffer and that arise from, result from, or are related to this article, topics contained herein or any actions reader may have taken as a result of reading said article.