U.S. Virgin Islands Assessed FUTA Credit Reduction for 2021

Employers in the U.S. Virgin Islands are to pay higher payroll costs for 2021 because of a Federal Unemployment Tax Act credit reduction, the Labor Department said Nov. 10.

A FUTA credit reduction is to apply to the U.S. Virgin Islands because the jurisdiction had a loan balance from the federal unemployment account on Nov. 10 and was assessed a credit reduction for 2020.

For 2021, employers in the U.S. Virgin Islands are to be assessed a general FUTA credit reduction of 3.3% on wages paid to employees for work attributed to the jurisdiction, the department said on its website ...