Labor Department Reveals Potential 2024 FUTA Credit Reductions

California, Connecticut, New York, and the US Virgin Islands might be subject to a Federal Unemployment Tax Act credit reduction for 2024, according to a table published by the federal Labor Department’s Employment and Training Administration.

If California, Connecticut, or New York receive a credit reduction for 2024, the credit reduction amount would be 0.9%, and employers in these states would pay an effective federal unemployment tax rate of 1.5%, according to the publication. Employers in these states would consequently pay up to $105 for each employee in federal unemployment tax when applied to the federal unemployment-taxable wage base of ...