Indiana Gov. Mike Pence recently announced the state will pay off the federal unemployment loan, approximately $250 million, using cash reserves. As a result, businesses will not have to pay the Federal Unemployment Tax Act (FUTA) credit reduction of 1.8% on up to $7,000 in wages for each employee for 2015. Some companies may accrue for this additional FUTA liability in January 2016, and will be able to reverse their accrual. Click here to contact Beth McGraw in our Entrepreneurial Services department if you have any questions.
