{"id":4441,"date":"2010-11-16T18:44:24","date_gmt":"2010-11-16T23:44:24","guid":{"rendered":"https:\/\/old.visionpayroll.com\/kb\/?p=4441"},"modified":"2010-11-18T19:06:55","modified_gmt":"2010-11-19T00:06:55","slug":"michigan-futa-tax-credit-reduction-to-increase-for-2010","status":"publish","type":"post","link":"https:\/\/old.visionpayroll.com\/kb\/2010\/11\/michigan-futa-tax-credit-reduction-to-increase-for-2010\/","title":{"rendered":"Michigan FUTA Tax Credit Reduction to Increase for 2010"},"content":{"rendered":"

<\/a>

\r\n\t\"Andrew<\/a>\r\n\t
Andrew S. Levin, Acting Director, Michigan Department of Energy, Labor & Economic Growth<\/div>\r\n<\/div>According to the Unemployment Insurance Agency<\/a> of the State of Michigan Department of Energy, Labor & Economic Growth<\/a>, the FUTA tax credit reduction rate will increase from 0.3% in 2009 to 0.6% in 2010.<\/p>\n

Standard Credit Rate is 5.4% for 2010<\/strong><\/p>\n

Generally, employers who pay their state unemployment tax by the due date for filing\u00a0Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return<\/a>\u00a0receive a credit 5.4% against their Federal Unemployment Tax Act (FUTA) tax. This credit is claimed on Form 940<\/a>.<\/p>\n

FUTA Wage Base is $7,000 for 2010<\/strong><\/p>\n

Since the FUTA wage base is $7,000 for 2010,\u00a0a maximum tax of $56 per employee is due, calculated as follows:<\/p>\n\n\n\n\t\n\t\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t
FUTA Taxable Wage Base<\/th><\/th>\n\t<\/tr>\n<\/thead>\n
FUTA Taxable Wage Base<\/td>$<\/span>7,000<\/td>\n\t<\/tr>\n\t
FUTA Tax Rate<\/td>6.2%<\/td>\n\t<\/tr>\n\t
Maximum FUTA Tax per Employee Before Credit\t$434.00<\/td>$<\/span>434<\/td>\n\t<\/tr>\n\t
Less: FUTA Tax Credit Reduction ($7,000 X 5.4%)<\/td>$<\/span>378<\/td>\n\t<\/tr>\n\t
Maximum Net FUTA Tax per Employee<\/td>$<\/span>56<\/td>\n\t<\/tr>\n<\/tbody>\n<\/table>\n\n

Employers in Certain States Are Subject To Credit Reduction<\/strong><\/p>\n

Federal law provides for a reduction in the FUTA tax credit when a state has outstanding federal loans for two years. The credit reduction is calculated on Schedule A<\/a> of Form 940<\/a>.<\/p>\n

Michigan Is Subject To Credit Reduction for Second Consecutive Year<\/strong><\/p>\n

Since Michigan was already subject to a credit reduction in 2009 of 0.3%, the credit reduction will increase to 0.6% for 2010. The credit reduction will continue to increase by 0.3 percentage points each year until the loan is paid, e.g.<\/em>, 0.9% in 2011, 1.2% in 2012, etc.<\/p>\n

Vision Payroll Will Calculate the Credit Reduction for All Michigan Clients<\/strong><\/p>\n

Contact Vision Payroll<\/a> if you have any further questions on the Michigan credit reduction.<\/p>\n","protected":false},"excerpt":{"rendered":"

Andrew S. Levin, Acting Director, Michigan Department of Energy, Labor & Economic Growth According to the Unemployment Insurance Agency of the State of Michigan Department of Energy, Labor & Economic Growth, the FUTA tax credit reduction rate will increase from 0.3% in 2009 to 0.6% in 2010. Standard Credit Rate is 5.4% for 2010 Generally, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[435,1407,529,74,1107],"_links":{"self":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/4441"}],"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=4441"}],"version-history":[{"count":21,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/4441\/revisions"}],"predecessor-version":[{"id":4473,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/4441\/revisions\/4473"}],"wp:attachment":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/media?parent=4441"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/categories?post=4441"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/tags?post=4441"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}