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POSSIBLE PAYROLL TAX INCREASE FOR 2015

 

 

Dear clients and colleagues,

 

For the fourth consecutive year all employers (with the exception of a few states in the U.S.) are faced with a possible payroll tax increase retroactive to January 1, 2015.

 

The possible tax increase is the result of loans that many states have taken from the IRS to fund depleted state unemployment insurance funds. When states run out of their own unemployment insurance pool of money, they borrow from the IRS. Each state has until November 10th of the current year to pay back their loan. If the loans are not paid back by that date, the IRS increases the FUTA (Federal Unemployment Tax) from the current rate of 0.6% to (this year) 2.1%.

 

The FUTA tax has a wage base limit of $7000.00 per person which means that the maximum additional tax would be $105.00 per employee.

 

We will not know until late December if any of the states have paid their loans back. If the loans are not paid back we will need to collect that additional tax in late December/early January in order to pay that tax on your behalf.

 

If you have any questions regarding this please feel free to contact me.

 

 

Thank you,

Deborah Grandinetti

661-294-2300

 

 

 

 



 
We, at Payroll Providers, will always do our best to keep you informed of changes related to payroll and would like for you to know that we are here to help with all your payroll needs. Please feel free to call us at any time (661-294-2300).
 
Sincerely,
 

Deborah Grandinetti
Payroll Providers