{"id":4543,"date":"2010-11-28T17:40:32","date_gmt":"2010-11-28T22:40:32","guid":{"rendered":"https:\/\/old.visionpayroll.com\/kb\/?p=4543"},"modified":"2011-11-22T17:53:52","modified_gmt":"2011-11-22T22:53:52","slug":"indiana-is-a-credit-reduction-state-for-2010","status":"publish","type":"post","link":"https:\/\/old.visionpayroll.com\/kb\/2010\/11\/indiana-is-a-credit-reduction-state-for-2010\/","title":{"rendered":"Indiana Is a Credit Reduction State for 2010"},"content":{"rendered":"
\r\n\t\"Mark<\/a>\r\n\t
Mark W. Everson, Commissioner, Indiana Department of Workforce Development<\/div>\r\n<\/div>According to the Indiana Department of Workforce Development<\/a>, Indiana will be a FUTA tax credit reduction state\u00a0in 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 Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return<\/a> receive 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, a 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

Indiana Is Subject To Credit Reduction for First Time<\/strong><\/p>\n

Since Indiana was not a credit reduction state in 2009, the credit reduction rate will be 0.3% for 2010.\u00a0Adding the credit reduction rate of 0.3% to the normal rate of 0.8% results in an effective FUTA rate of 1.1% for Indiana employers in 2010. The credit reduction will continue to increase by 0.3 percentage points each year until the loan is paid, e.g.<\/em>, 0.6% in 2011, 0.9% in 2012, etc. Adding the credit reduction rate of 0.3% to the normal rate of 0.8% results in an effective FUTA rate of 1.1% for Indiana employers in 2010.<\/p>\n

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

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

Mark W. Everson, Commissioner, Indiana Department of Workforce Development According to the Indiana Department of Workforce Development, Indiana will be a FUTA tax credit reduction state\u00a0in 2010. Standard Credit Rate is 5.4% for 2010 Generally, employers who pay their state unemployment tax by the due date for filing Form 940, Employer’s Annual Federal Unemployment (FUTA) […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[4],"tags":[435,1407,529,74,102],"_links":{"self":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/4543"}],"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=4543"}],"version-history":[{"count":8,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/4543\/revisions"}],"predecessor-version":[{"id":4569,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/4543\/revisions\/4569"}],"wp:attachment":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/media?parent=4543"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/categories?post=4543"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/tags?post=4543"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}