Because of this action, the state should not be subject to a FUTA credit reduction for calendar year 2023, as long as the state does not borrow again and have outstanding advances as of November 10, 2023. On January 25, 2023, the state of Illinois repaid all outstanding Title XII advances. Virgin Islands will have its FUTA tax credit reduced by 3.6% for an effective FUTA tax rate of 4.2%.) As such, the net FUTA tax rate for 2022. The net FUTA tax rate for 2022 will increase by 50% from 0.60% to 0.90% (the U.S. As such, these jurisdictions will be subject to a FUTA credit reduction for 2022. Department of Labor, as of November 10, 2022, announced that (California, Connecticut, Illinois, New York and the Virgin Islands) have had outstanding Title XII advances on January 1 for two consecutive years (20), and on November 10, 2022. ![]() Even with these mitigation efforts, SUI tax rates increased, on average, from 1.72% in 2020 to 1.89% in 2021 to 2.30% in 2022.¹ Now the question becomes, what is the outlook for 2023 SUI tax rates? FUTA Credit Reductions - 2022īefore addressing SUI tax rates, FUTA tax rates and FUTA credit reductions are top of mind for employers as well. ![]() ![]() Many states acted quickly in response to the COVID-19 pandemic to help mitigate sizable increases in 2021 SUI tax rates. Last updated: (changes since last update on Mawill begin with **NEW**)Ĭheck out the newest information in the Outlook for State Unemployment Insurance (SUI) Tax Rates in 2024 and Beyond
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