FUTA Rate Change
Posted 7-8-2011 | By Paul Dillon
Beginning July 1, 2011 the effective FUTA tax rate will be reduced from .8 to .6 percent for all employers liable for FUTA. The .2 percent reduction is the result of the surtax not being extended as it has been in the past.
Commentary suggests if the .2 percent surtax is reinstated at a later date, it will likely be done retroactively to July 1, 2011. The IRS has stated in a conference call that it would not assess deposit penalties if the third and fourth quarter deposits were at the lower rate and the FUTA surtax were later reinstated retroactive to July 1, 2011.
For more information, please contact Paul Dillon, CPA, at pdillon@hlbtr.com.