On May 23rd Representatives Steel and Tenney Introduced legislation to provide relief from Federal Unemployment Tax triggered increases on employers with employment in states with outstanding federal unemployment insurance loans. California and New York are two states in which the Federal Unemployment Tax net rate will increase again for 2024 (along with the Virgin Islands). Employers in Connecticut are also at risk of a FUTA increase if loan amounts are not repaid by November 10th.
The bill would provide relief from the increases for employers with fewer than 500 employees as of the third quarter of 2024 from the automatic increase in FUTA taxes (reduction in offset credit) that would otherwise be due for 2024 with payment in January of 2025. See the release from the House Ways and Means Committee below.
UWC supports state efforts to use remaining amounts in State and Local Recovery Funds available through the American Rescue Plan Act and state solvency measures to eliminate outstanding loans.
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