For calendar year 2012, the federal unemployment tax (FUTA) rate is 6.0%. The taxable wage base is the first $7,000 paid in wages to each employee during the calendar year.

Employers who pay the state unemployment tax on a timely basis may be eligible to receive an offset credit of 5.4%. Therefore, the net FUTA tax rate for wages paid in calendar year 2012 is generally 0.6% (6.0% - 5.4%) for a maximum FUTA tax of $42.00 per employee, per year (0.6% x $7,000 = $42.00).

FUTA credit reduction states will see an increase in their FUTA taxes retroactive to January 1, 2012. The reduction in FUTA tax credit is 0.3% for the first year and an additional 0.3% for each succeeding year until the loan is repaid.

The Federal government has identified as many as 19 states on its websites that are facing FUTA credit reductions. Information about the credit reduction states can be found at the following sites:

• IRS: FUTA Credit Reduction
• DOLETA Workforce Security: Final 2012 FUTA Credit Reductions

The table below lists the 19 credit reduction states for 2012.

State	Credit Reduction
Arizona	0.3%
Arkansas	0.6%
California	0.6%
Connecticut	0.6%
Delaware	0.3%
Florida	0.6%
Georgia	0.6%
Indiana	0.9%
Kentucky	0.6%
Missouri	0.6%
Nevada	0.6%
New Jersey	0.6%
New York	0.6%
North Carolina	0.6%
Ohio	0.6%
Rhode Island	0.6%
Vermont	0.3%
Virgin Islands	1.5%
Wisconsin	0.6%

The 2012 FUTA tax is due and payable on January 31, 2013, on the IRS Form 940 for 2012, Employer's Annual Federal Unemployment (FUTA) Tax Return and Schedule A (Form 940) for 2012.


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