The DOL released its list of 2011 FUTA “credit-reduction” states on November 18, 2011. Employers in 20 states and the Virgin Islands will experience FUTA tax increases. Instead of the standard 5.4% credit allowed, employers in the states listed below will have a reduced credit of 5.1% for 2011, making their FUTA tax rate .9%. In addition, Indiana and Michigan will have lower rates due to being subject to credit reduction from 2010. The states with a .003 FUTA credit reduction are:
Arkansas, California, Connecticut,Florida, Georgia, Illinois, Kentucky, Minnesota, Missouri, 
North Carolina, New Jersey, Nevada, New York, Ohio, Pennsylvania, Rhode Island, Virginia,
Wisconsin, and the Virgin Islands
Indiana: Employers in Indiana will have their credit reduced from 5.4% to 4.8% for 2011, making their FUTA tax rate 1.2%
Michigan: Employers in Michigan will have their credit reduced from 5.4% to 4.5% for 2011, making their FUTA tax rate 1.5%
FUTA Credit Reduction Update
Payroll News
Updated December 7, 2011
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