Notice2023-26457
Notice of the Federal Unemployment Tax Act (FUTA) Credit Reductions Applicable for 2023
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
December 1, 2023
Issuing agencies
Labor DepartmentEmployment and Training Administration
Full Text
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<title>Federal Register, Volume 88 Issue 230 (Friday, December 1, 2023)</title>
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[Federal Register Volume 88, Number 230 (Friday, December 1, 2023)]
[Notices]
[Page 83970]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-26457]
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DEPARTMENT OF LABOR
Employment and Training Administration
Notice of the Federal Unemployment Tax Act (FUTA) Credit
Reductions Applicable for 2023
Sections 3302(c)(2)(A) and 3302(d)(3) of 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.
California, Connecticut, Illinois, New York, and the US Virgin
Islands (USVI) had outstanding advances on January 1 for two or more
consecutive years and employers in these states were potentially
subject to a FUTA credit reduction in 2023. However, Connecticut and
Illinois repaid their outstanding advances before November 10, 2023. As
a result, employers in these two states are not subject to a FUTA
credit reduction for 2023. California and New York did not repay their
outstanding advances before November 10, 2023. Therefore, employers in
these states are subject to a FUTA credit reduction of 0.6 percent for
2023.
USVI has experienced outstanding advances on January 1 for many
years. Employers in 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 and the
Employment and Training Administration determined that USVI met each of
the criteria 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 2023. However, because USVI
has had an outstanding advance on each January 1 from 2010 through
2023, and maintained an outstanding balance on November 10, 2023,
employers in USVI are subject to a FUTA credit reduction of 3.9 percent
in 2023.
Lenita Jacobs-Simmons,
Deputy Assistant Secretary for Employment and Training Administration.
[FR Doc. 2023-26457 Filed 11-30-23; 8:45 am]
BILLING CODE 4510-FW-P
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</html>Indexed from Federal Register on December 1, 2023.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.