FEDERAL UNEMPLOYMENT TAX FOR 2012

Florida is Now a Credit Reduction State.

The Federal unemployment tax rate is 6.0%

In years past we were allowed to reduce this tax by 5.4% (6.0% - 5.4% = .6%) as credit for unemployment taxes paid to Florida, but because of interest (past) due on funds that Florida borrowed in order to maintain unemployment benefits, this CREDIT has been reduced from 5.4% to 5.1% for a reduction of .3%.

This means that the Net effective FUTA tax rate is now (6.0% - 5.1% = .9%) or .009

The taxable wage base remains the first $7,000 dollars paid to each employee, therefore the tax for one employee is: ($7,000 x .009 = $63.00).