4 States Assessed FUTA Credit Reductions for 2022

Employers in California, Connecticut, Illinois, New York, and the US Virgin Islands will pay higher payroll costs for 2022 because of a Federal Unemployment Tax Act credit reduction, the Labor Department said Nov. 10.

For 2022, employers in California, Connecticut, Illinois, and New York will be assessed a general FUTA credit reduction of 0.3% on wages paid to employees for work attributed to any of these states, the department said on its website. The reduction will cause employers to pay an effective tax rate of 0.9%, or up to $63 for each employee when applied to the federal unemployment-taxable ...