Announcements, News & Tips

[kirktjohn]

The 2012 Tax Table Update has the FUTA surtax as .8% but I believe it should be .6% per H.R. 3765 signed into law 12/24/11. 

[TomTarget]

Tax table updates were probably originally released 12/20 and have not been updated for the late change.

[Chris]

I am getting ready to process our year end FUTA.  I noticed that my 1st and 2nd quarter 2011 payroll reports show FUTA calculating at 8% and 3rd and 4th quarter at 6%.

I thought I saw a SAGE conversation showing that 1st and 2nd quarter should be 6.2% and 3rd and 4th at 6%.

Is anyone else running into this?

[pauline]

I think what you're seeing is 0.8% & 0.6%.  These are the net rates after the 5.4% credit for state unemployment is deducted from the base FUTA rates of 6.2 & 6.0. 

[Chris]

Yes, I did forget the decimal points in stating .8% and .6%.

But I found out from my accountant today that Minnesota is a state that is not eligible to claim the ful 5.4% unemployment tax credit against the FUTA.

So instead of a .8% and .6% rates, we now owe more......1.1% for the first 6 months and .9% for the 2nd 6 months.

Why doesn't SAGE know this and include this in our tax table updates?  Not only does this mean we need to recalculate our FUTA rates, but it also means that we will probably not be able to use the efiling feature (for FUTA) that I've already paid for.