FUTA Update—Increased 2012 Rate
December 27, 2012
The U.S. Department of Labor has released the listing of FUTA Credit Reduction States for 2012. States that have outstanding loans with the Federal Unemployment Trust fund will have their FUTA credit amount reduced in order to pay back the loans. Delaware is one of those states this year. Normally Delaware employers would receive a 5.4% credit against the 6% FUTA rate as long as the state payments are made timely, thus reducing the federal rate to 0.6%. For 2012 the credit for Delaware has been reduced to 5.1% thus increasing the amount of the assessment from 0.6% to 0.9%. This increase in assessment will be accounted for and paid with the annual Form 940. Maryland and Pennsylvania are not affected by this.