Monday, July 11, 2011

Change in Federal Unemployment Tax Rate

Effective July 1, 2011, the IRS announced that there will be a reduction in the Federal Unemployment Tax Act (FUTA) rate due to the expiration of the 0.2 percent FUTA surtax. This will decrease the overall rate from 6.2% to 6.0% on FUTA taxable wages paid after June 30, 2011. The annual FUTA taxable wage base of the first $7,000 paid to each employee remains unchanged.

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