FUTA Tax Rate Update

In an effort to keep you informed on current Payroll tax legislation, we would like to bring the following information to your attention:

§        The FUTA rate is set to decrease to 6.0% effective July 1, 2011, if legislation is not enacted to extend the FUTA surcharge.

§  If not enacted to extend, this will make the FUTA tax rate .6% after the FUTA credit of 5.4% that employers are allowed to take for making timely SUI payments throughout the quarter.

We will make the appropriate changes within the payroll software to accommodate these changes as they occur.  We continue to watch for any upcoming legislation regarding the FUTA tax, and will keep you informed.

Please contact us with any questions.