Notice of the Federal Unemployment Tax Act (FUTA) Credit Reduction Applicable in 2021

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Published

November 19, 2021

Issuing agencies

Labor DepartmentEmployment and Training Administration

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<title>Federal Register, Volume 86 Issue 221 (Friday, November 19, 2021)</title>
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[Federal Register Volume 86, Number 221 (Friday, November 19, 2021)]
[Notices]
[Pages 64961-64962]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-25243]


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DEPARTMENT OF LABOR

Employment and Training Administration


Notice of the Federal Unemployment Tax Act (FUTA) Credit 
Reduction Applicable in 2021

    Sections 3302(c)(2)(A) and 3302(d)(3) of the FUTA provide that 
employers in a state that has outstanding advances under Title XII of 
the Social Security Act on January 1 of two or more consecutive years 
are subject to a reduction in credits otherwise available against the 
FUTA tax for the calendar year in which the most recent such January 1 
occurs, if advances remain on November 10 of that year. Further, 
Section 3302(c)(2)(C) of FUTA provides for an additional credit 
reduction for a year if a state has outstanding advances on five or 
more consecutive January 1 and has a balance on November 10 for such 
years. Section 3302(c)(2)(C) provides for waiver of this additional 
credit reduction and substitution of the credit reduction provided in 
Section 3302(c)(2)(B) if a state meets certain conditions.
    Employers in the U.S. Virgin Islands (USVI) were potentially liable 
for the additional credit reduction under Section 3302(c)(2)(C) of 
FUTA. The jurisdiction applied for the waiver of this additional credit 
reduction. The Employment and Training

[[Page 64962]]

Administration determined that USVI met all of the criteria of the 
section necessary to qualify for the waiver of the additional credit 
reduction. Therefore employers in USVI will have no additional credit 
reduction applied for calendar year 2021. However, as a result of USVI 
having outstanding advances on each January 1 from 2010 through 2021, 
and an outstanding balance on November 10, 2021, employers in USVI are 
subject to a FUTA credit reduction of 3.3 percent in 2021.

Angela Hanks,
Acting Assistant Secretary for Employment and Training.
[FR Doc. 2021-25243 Filed 11-18-21; 8:45 am]
BILLING CODE P


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