Announcements for Payroll and OTL can now be found in the Announcements - Payroll and OTL - EBS (MOSC) subcategory. Follow to be sure you don't miss a thing!
US PAY: FUTA Surtax expiration as of 6/30/11 and Statutory Q2 patch
Is there a provision in Q2 to handle the separation of FUTA taxable wages prior to 7/1 and after 7/1 for the recalcuation of FUTA tax owed? Just in case the federal government allows the FUTA surcharge to really expire.
FUTA Surtax Set to Expire June 30
The 0.2% Federal Unemployment Tax Act (FUTA) surtax is set to expire on June 30, 2011. The permanent gross FUTA tax rate is 6.0%. The 0.2% surtax was added in 1976 and has been in effect since then. The last time it was extended was from January 1, 2010 to June 30, 2011, under the Worker, Homeownership, and Business Assistance Act of 2009. Before expiration of the 0.2% surtax, the net FUTA tax employers pay after taking credit for up to 5.4% of state unemployment taxes paid is 0.8%. After expiration, the net FUTA rate will be reduced to 0.6%
AMERICAN PAYROLL ASSOCIATION
Compliance Update
FUTA Surtax Set to Expire June 30
The 0.2% Federal Unemployment Tax Act (FUTA) surtax is set to expire on June 30, 2011. The permanent gross FUTA tax rate is 6.0%. The 0.2% surtax was added in 1976 and has been in effect since then. The last time it was extended was from January 1, 2010 to June 30, 2011, under the Worker, Homeownership, and Business Assistance Act of 2009. Before expiration of the 0.2% surtax, the net FUTA tax employers pay after taking credit for up to 5.4% of state unemployment taxes paid is 0.8%. After expiration, the net FUTA rate will be reduced to 0.6%
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