{"id":2187,"date":"2009-12-11T22:26:27","date_gmt":"2009-12-12T03:26:27","guid":{"rendered":"https:\/\/old.visionpayroll.com\/kb\/?p=2187"},"modified":"2009-12-11T22:26:27","modified_gmt":"2009-12-12T03:26:27","slug":"question-of-the-week-what-is-a-credit-reduction-state","status":"publish","type":"post","link":"https:\/\/old.visionpayroll.com\/kb\/2009\/12\/question-of-the-week-what-is-a-credit-reduction-state\/","title":{"rendered":"Question of the Week: What is a Credit Reduction State?"},"content":{"rendered":"<p>This week\u2019s question comes from Scott, a small-business owner. I own a business in Michigan. I\u2019ve heard that for 2009, Michigan is a credit reduction state. What is a credit reduction state? Answer: For 2009, Michigan is the only \u201ccredit reduction state\u201d. This means that employers in Michigan are not allowed the full credit against the federal unemployment tax act (FUTA) tax. Wages paid that are subject to the unemployment compensation laws of the state of Michigan do not receive the full credit of 5.4%; a credit reduction of 0.3% applies so that such wages receive a credit of 5.1% for 2009. Employers that have wages that are subject to the unemployment compensation laws of the state of Michigan must use <a href=\"http:\/\/www.irs.gov\/pub\/irs-pdf\/f940sa.pdf\" target=\"_blank\">Schedule A<\/a> of <a href=\"http:\/\/www.irs.gov\/pub\/irs-pdf\/f940.pdf\" target=\"_blank\">Form 940<\/a> to calculate the FUTA due. Contact <a href=\"mailto:info@visionpayroll.com\" target=\"_blank\">Vision Payroll<\/a> if you have any further questions on credit reduction states.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This week\u2019s question comes from Scott, a small-business owner. I own a business in Michigan. I\u2019ve heard that for 2009, Michigan is a credit reduction state. What is a credit reduction state? Answer: For 2009, Michigan is the only \u201ccredit reduction state\u201d. This means that employers in Michigan are not allowed the full credit against [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[243,529,74,1107,44],"_links":{"self":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/2187"}],"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=2187"}],"version-history":[{"count":2,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/2187\/revisions"}],"predecessor-version":[{"id":2189,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/2187\/revisions\/2189"}],"wp:attachment":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/media?parent=2187"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/categories?post=2187"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/tags?post=2187"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}