Notice2024-28880
Notice of the Federal Unemployment Tax Act (FUTA) Credit Reductions Applicable for 2024
Primary source
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Published
December 10, 2024
Issuing agencies
Labor DepartmentEmployment and Training Administration
Full Text
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<title>Federal Register, Volume 89 Issue 237 (Tuesday, December 10, 2024)</title>
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[Federal Register Volume 89, Number 237 (Tuesday, December 10, 2024)]
[Notices]
[Pages 99282-99283]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-28880]
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DEPARTMENT OF LABOR
Employment and Training Administration
Notice of the Federal Unemployment Tax Act (FUTA) Credit
Reductions Applicable for 2024
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, 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 2024. Connecticut repaid
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their outstanding advances before November 10, 2024, and as a result,
employers in this state are not subject to a FUTA credit reduction for
2024. California and New York did not repay their outstanding advances
before November 10, 2024, and had outstanding advances on January 1 for
four consecutive years. Therefore, employers in California and New York
are subject to a FUTA credit reduction of 0.9 percent for 2024.
USVI has had outstanding advances on January 1 for 15 consecutive
years. As a result, 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 2024. However,
because USVI has had an outstanding advance on each January 1 from 2010
through 2024, and maintained an outstanding balance on November 10,
2024, employers in USVI are subject to a FUTA credit reduction of 4.2
percent in 2024.
Jos[eacute] Javier Rodr[iacute]guez,
Assistant Secretary for Employment and Training Administration.
[FR Doc. 2024-28880 Filed 12-9-24; 8:45 am]
BILLING CODE 4510-FW-P
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</html>Indexed from Federal Register on December 10, 2024.
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.