{"id":6560,"date":"2011-11-21T18:00:30","date_gmt":"2011-11-21T23:00:30","guid":{"rendered":"https:\/\/old.visionpayroll.com\/kb\/?p=6560"},"modified":"2011-11-22T18:03:57","modified_gmt":"2011-11-22T23:03:57","slug":"california-is-a-credit-reduction-state-for-2011","status":"publish","type":"post","link":"https:\/\/old.visionpayroll.com\/kb\/2011\/11\/california-is-a-credit-reduction-state-for-2011\/","title":{"rendered":"California Is a Credit Reduction State for 2011"},"content":{"rendered":"<div class=\"img alignright size-full wp-image-6554\" style=\"width:145px;\">\r\n\t<a href=\"https:\/\/old.visionpayroll.com\/kb\/wp-content\/uploads\/2011\/11\/Pam_Harris.jpg\"><img src=\"https:\/\/old.visionpayroll.com\/kb\/wp-content\/uploads\/2011\/11\/Pam_Harris.jpg\" alt=\"Pam Harris, Chief Deputy Director, California EDD\" width=\"145\" height=\"194\" \/><\/a>\r\n\t<div>Pam Harris, Chief Deputy Director, California EDD<\/div>\r\n<\/div>According to the California Employment Development Department, California will be a FUTA tax credit reduction state in 2011.<\/p>\n<p><strong>Standard Credit Rates Is 5.4% for 2011<\/strong><\/p>\n<p>Generally, employers who pay their state unemployment tax by the due date for filing Form 940, Employer&#8217;s Annual Federal Unemployment (FUTA) Tax Return, receive a credit 5.4% against their Federal Unemployment Tax Act (FUTA) tax. This credit is claimed on Form 940.<\/p>\n<p><strong>FUTA Wage Base Is $7,000 for 2011<\/strong><\/p>\n<p>The FUTA wage base is $7,000 for 2011.<\/p>\n<p><strong>Employers in Certain States Are Subject To Credit Reduction<\/strong><\/p>\n<p>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 of Form 940.<\/p>\n<p><strong>California Is Subject To Credit Reduction for First Time<\/strong><\/p>\n<p>Since California was not a credit reduction state in 2010, the credit reduction rate will be 0.3% for 2011. California employers will receive a reduced credit of 5.1% for 2011. For the first six months of 2011, the FUTA tax rate was 6.2% and for the last six months of 2011, the FUTA tax rate has been 6.0%. Therefore, California employers will pay an effective rate of 1.1% for the first six months of 2011 and 0.9% for the last six months of 2011. The credit reduction will continue to increase by 0.3 percentage points each year until the loan is paid, <em>e.g.<\/em>, 0.6% in 2012, 0.9% in 2013, etc.<\/p>\n<p><strong>Vision Payroll Will Calculate the Credit Reduction for All California Clients<\/strong><\/p>\n<p>Contact <a href=\"mailto:info@visionpayroll.com\" target=\"_blank\"><span style=\"color: #800080;\">Vision Payroll<\/span><\/a> if you have any further questions on the California credit reduction.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Pam Harris, Chief Deputy Director, California EDD According to the California Employment Development Department, California will be a FUTA tax credit reduction state in 2011. Standard Credit Rates Is 5.4% for 2011 Generally, employers who pay their state unemployment tax by the due date for filing Form 940, Employer&#8217;s Annual Federal Unemployment (FUTA) Tax Return, [&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":[1064,209,210,211,529,74],"_links":{"self":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/6560"}],"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=6560"}],"version-history":[{"count":2,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/6560\/revisions"}],"predecessor-version":[{"id":6562,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/posts\/6560\/revisions\/6562"}],"wp:attachment":[{"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/media?parent=6560"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/categories?post=6560"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/old.visionpayroll.com\/kb\/wp-json\/wp\/v2\/tags?post=6560"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}