Received this bit of news today:
As of November 2012, several states had outstanding Unemployment Federal loans. As a result, employers in these states will see an increase in their FUTA taxes.
According to the IRS and Dept of Labor, New York is one of these states:
Generally, employers may receive a credit of 5.4% when they file their Form 940 (PDF), Employer’s Annual Federal Unemployment (FUTA) Tax Return, to result in a net FUTA tax rate of 0.6% (6.0% – 5.4% = 0.6%).
Some states take Federal Unemployment Trust Fund loans from the federal government if they lack the funds to pay UI benefits for residents of their states. If a state has outstanding loan balances on January 1 for two consecutive years, and does not repay the full amount of its loans by November 10 of the second year, the FUTA credit rate for employers in that state will be reduced until the loan is repaid.
Thus, New York employers will pay 0.6% more thanks to “New York State having Title XII advance balances on January 1 of at least two consecutive years and on November 10, 2012, and did not qualify for credit reduction avoidance.”
These vagabond shoes are longing to stray.