01 September 2016 Ohio repays FUTA loan balance potential saving employers money in 2016 As we reported in Tax Alert 2016-1371, recently-enacted HB 390 (Chapter 131) directed the Ohio Department of Job and Family Services (ODJFS ) to repay the state's outstanding federal unemployment insurance (FUTA) loan by September 30, 2016 through a loan from the state Department of Commerce's unclaimed funds reserve. According to the US Department of Labor, the state repaid its entire FUTA loan balance as of August 30, 2016. (US Department of Labor, Trust Fund Loans, 8-30-2016.) Provided the state does not borrow again before November 10, Ohio employers should expect no additional FUTA tax for 2016, reducing the FUTA tax rate from a potential 2.7%, to a net FUTA rate of 0.6% for most employers. Ohio employers should continue to budget at the higher rate until November 10, when the final FUTA credit reduction rates are announced. There are now just two jurisdictions where a FUTA credit reduction is likely for 2016 -California and the Virgin Islands. Earlier this year, Connecticut also repaid its federal loan balance in full.
Document ID: 2016-1488 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
