{"id":215,"date":"2008-11-11T11:13:03","date_gmt":"2008-11-11T15:13:03","guid":{"rendered":"https:\/\/old.visionpayroll.com\/kb\/?p=215"},"modified":"2008-11-11T11:13:03","modified_gmt":"2008-11-11T15:13:03","slug":"futa-surtax-extended-again","status":"publish","type":"post","link":"https:\/\/old.visionpayroll.com\/kb\/2008\/11\/futa-surtax-extended-again\/","title":{"rendered":"FUTA Surtax Extended Again"},"content":{"rendered":"<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; mso-margin-top-alt: auto; mso-margin-bottom-alt: auto;\"><span style=\"font-size: 10pt; font-family: Verdana;\">The Federal Unemployment Tax Act (FUTA) is imposed by <a href=\"http:\/\/www4.law.cornell.edu\/uscode\/26\/usc_sec_26_00003301----000-.html\" target=\"_blank\">\u00a73301<\/a> of the Internal Revenue Code of 1986 (IRC). The statutory rate of 6.2% was set to revert at the end of 2008 to the original rate of 6.0%. Under \u00a7404 <\/span><span style=\"font-size: 10pt; color: #000000; font-family: Verdana; mso-bidi-font-family: Arial;\">of the <a href=\"http:\/\/frwebgate.access.gpo.gov\/cgi-bin\/getdoc.cgi?dbname=110_cong_bills&amp;docid=f:h1424enr.txt.pdf\" target=\"_blank\">Emergency Economic Stabilization Act<\/a> (Public Law 110-343 or the \u201cbailout bill\u201d), the 0.2% surtax has now been extended to the end of 2009. The surtax was originally enacted in 1976 to fund additional payments made through a program that extended unemployment benefits. The loans used to fund the program were retired in 1987, but the surtax continues.<\/span><\/p>\n<p><span style=\"font-size: 10pt; color: #000000; font-family: Verdana; mso-bidi-font-family: Arial; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA;\">Since IRC <a href=\"http:\/\/www4.law.cornell.edu\/uscode\/26\/usc_sec_26_00003302----000-.html\" target=\"_blank\">\u00a73302<\/a> allows most employers a credit against 90% of the tax (not including the surtax) for payments into state unemployment funds, the effective FUTA rate is generally 0.8%. This is calculated by taking the statutory rate of 6.2% and reducing it by the credit of 5.4% (6.0% rate without the surtax times 90%). Employers are not allowed a credit against the surtax. For employees who earn at least the 2009 wage base of $7,000, the FUTA tax liability should be $56. Without the surtax, the tax would have been $42. <\/span><span style=\"font-size: 10pt; font-family: Verdana; mso-bidi-font-family: 'Times New Roman'; mso-fareast-font-family: 'Times New Roman'; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA;\">Contact <a href=\"mailto:info@visionpayroll.com\" target=\"_blank\">Vision Payroll<\/a> if you have any question on FUTA taxes and rates.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Federal Unemployment Tax Act (FUTA) is imposed by \u00a73301 of the Internal Revenue Code of 1986 (IRC). The statutory rate of 6.2% was set to revert at the end of 2008 to the original rate of 6.0%. Under \u00a7404 of the Emergency Economic Stabilization Act (Public Law 110-343 or the \u201cbailout bill\u201d), the 0.2% [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[520,521,522,516,514,74,515,519],"_links":{"self":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/215"}],"collection":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/comments?post=215"}],"version-history":[{"count":0,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/215\/revisions"}],"wp:attachment":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/media?parent=215"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/categories?post=215"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/tags?post=215"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}