2011 Federal Unemployment INCREASE in Florida

To my friends and long-term clients from Joe Lania ;

The federal unemployment tax has remained unchanged for many years. The taxable rate, after a consistent State credit, has been .008 for many, many years. This year, it has increased for our State of Florida.

YES, a federal rate has increased for our State because of increased unemployment and seemingly uncontrolled unemployment benefits extensions. (how long can you remain out of work?) Because so many are collecting for so long, and the State of Florida has borrowed money and NOT repaid it to the feds, the Federal government has INCREASED the rate paid by Florida employers and proclaimed it as being a tax reduction (they cut of .002 for 6 months YET increased the overall rate by .003 for a FULL YEAR!!)

THAT is why your FUT (federal unemployment tax) check going out this month is much higher!!

Instructions for Schedule A (Form 940) for 2011:

Credit Reduction Information

Step 1. Check the box for every state in

which you were required to pay state unemployment taxes

this year even if the state’s credit reduction rate is zero.

For ease of reference, here is your State

Florida FL .003

Step 2. You are subject to credit reduction if you paid wages

in any state listed that has a credit reduction rate greater

than zero.

Enter your total in the credit reduction box at the end of the line.

Step 3. Total credit reduction

To calculate the total credit reduction, add up all of the credit

reduction boxes and enter the number in the total credit

reduction box.

Then enter the total credit reduction onto line 11 of Form 940.

Attach Schedule A (Form 940) to Form 940 when you file your



Joseph S. Lania, CPA

office (954) 432-2299

About Joseph S Lania CPA

Joseph Lania CPA is a firm well-respected for providing prompt, personal and professional service in all of your accounting needs including income taxes, filing all personal tax returns, preparing your business taxes, expert business accounting advice, filing taxes, QuickBooks training and condo tax and audits. Our goal has always been to provide our clients with a higher level of professional service. Our mission at Joseph S. Lania, CPA is to always help our clients succeed in business, while honoring our obligation to the public, all within the framework and standards of our profession. We value our clients, and it shows in the quality of our service. Contact us at joe@laniacpa.com Call us at 954-432-2299
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