UPDATE on Unemployment Comp Loan Repayment

This comes from commenter Scott Coffey:

This action was too late to avoid punishing Illinois employers.

Just received this notice from my payroll processor, ADP:

“Our records indicate your company will be assessed additional Federal Unemployment Tax Act (FUTA) tax by the federal government for 2022 because you have employees working in one or more FUTA Credit Reduction states: California, Connecticut, Illinois, New York.

“This means a state has taken loans from the federal government to meet its unemployment benefits obligations and has not repaid the loans within the allowable time frame.

“As a result, the usual credit against the full FUTA tax rate is reduced, and additional FUTA tax of .3% will be due for employers in these states.”


Comments

UPDATE on Unemployment Comp Loan Repayment — 4 Comments

  1. Luckily my Protection Order I have against the State of Illinois, doesn’t expire until 2045.

  2. All the losers who voted in the toilet ki ng should be the ones who pay back what ff had not ! Why should the good pay for Stupids

  3. They waited until AFTER the IRS repayment deadline of November 10th to repay the loan to the federal government even

    though they have been sitting on this cash for a long time.

    They knew that missing the deadline would trigger incremental expense for all businesses for 2023.

    Here is the link to the IRS site explaining the loan repayment details and the consequences for not repaying it on a timely basis:

    https://www.irs.gov/businesses/small-businesses-self-employed/futa-credit-reduction

Leave a Reply

Your email address will not be published. Required fields are marked *