FUTA Updates

Employers in the U.S. Virgin Islands paid a higher than standard federal unemployment tax rate due to the FUTA credit reduction for 2018. If they  continue to have a federal unemployment loan balance by November 10th that does not qualify for credit reduction avoidance, employers would be affected by a credit reduction this year as well. Federal unemployment tax amounts incurred by last year’s credit reduction are due by the end of this year. After six consecutive years of credit reductions for California, they were not a credit reduction jurisdiction for 2018.