2012 FUTA Credit Reduction will cost Indiana Employers in January of 2013

The FUTA credit will be reduced for Indiana from 5.4% to 4.5% for 2012.  This will result in a FUTA rate of 1.5%.  Since this rate was just announced, FUTA tax that has been calculated through the year will need to be increased and the result will be about $63.00 per employee. (for those who are paid over $7,000)

The difference will be paid in January 2013 and could be substantial for employers with large turnover rates or large numbers of employees.

If you prepare your own payroll be careful not to use the old rates.

 

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