Federal Unemployment Tax Rate for 2012
The Department of Labor has announced the list of states who will pay a higher Federal Unemployment Tax (FUTA) for 2012 due to a reduction in the credit that they normally receive. These states will receive a reduced credit because they borrowed funds from the federal government to pay benefits during the last few years, and they have not yet repaid them. For Florida employers, this means that their 2012 effective rate will be 1.2% for the first $7,000 of wages when Form 940 is filed in January 2013. Employers who made the first three quarterly payments of 2012 at a rate of .6% will be required to make a catch up payment in January of 2013 due to the adjustment of the rate.
Here’s an example: Smith Corporation pays Bob $40,000 in wages during 2012. Smith Corporation’s FUTA tax due on Bob’s wages paid in 2012 will be $84 ($7,000 x 1.2%). Assuming that the FUTA tax was paid quarterly at a rate of .6% or $42, a catch up payment of $42 will be due in January 2013.
If you have any questions regarding this information, please contact our office at (239) 433-5554. Our team of professionals welcomes the opportunity to discuss your specific situation further.