California, New York Hit With FUTA Credit Reductions for 2024

Employers in California, New York, and the US Virgin Islands will have higher unemployment tax costs for 2024 because of a Federal Unemployment Tax Act credit reduction, the Labor Department said Nov. 12.

For 2024, employers in California and New York will be assessed a general FUTA credit reduction of 0.9% on wages paid to employees for work attributed to either of these states, the department announced. The reduction will cause employers to pay an effective federal unemployment tax rate of 1.5%, or up to $105 for each employee when applied to the federal unemployment-taxable wage base of $7,000. ...