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
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
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