As staffing company business owners and managers, you’ve had a lot to think about and adapt to in the last 18 months or so. That’s why part of our job at TRICOM is to make sure we stay abreast of any changes – tax, legislative, or otherwise – that could impact your business.
One such change is the FUTA Credit Reduction.
The standard FUTA tax rate is 6% on the first $7,000 of wages subject to FUTA. Employers receive a credit of 5.4% if they pay their quarterly unemployment in a timely manner using Form 940, making the rate .6% (the percentage we are used to). If your state has a federal loan for unemployment that has not been paid within the given timeframe, your credit is reduced by .3% each year.