FUTA Credit Reductions in 2012

Bloomberg BNA (11/26/12) Vanessa Walts

Employers in some states could pay more in unemployment taxes in 2012 due to the states’ failure to repay federal loans. Employers in affected states would have to pay additional taxes by January 31, 2013.

Employers pay federal unemployment tax (FUTA) on the first $7,000 of income earned by each employee. The FUTA tax rate of 6% (as of July 1, 2011) is offset by a 5.4% credit if employers pay into their state unemployment tax fund. As a result, the net FUTA tax for most employers is 0.6%. Full Story Available

Minimum Wage Increases 2013

On January 1st minimum wage will increase in ten states including Colorado, Florida, and Missouri. These increases are in place to help adjust for inflation increases in various states.  Click here for state specific changes. 


Top Immigration Mistakes Employers Made in 2012

JDSupra (11/21/12) Shannon R. Stevenson

The U.S. Department of Labor required companies to pay civil penalties, fines, and back wages for a number of errors made this year with regard to immigrant workers, making it important for employers to conduct immigration self-audits to avoid making the same mistakes. Some of the most common mistakes include failing to pay the proper wages to H-1B workers, by requiring them to pay H-1B government filing fees; failing to comply with state E-Verify laws; and neglecting to inform employees of how to contest initial data mismatches in E-Verify, causing the system to issue an erroneous final response deeming the employee unauthorized to work in the U.S. Companies also violated Form I-9 document rules by failing to properly complete Forms I-9 or requiring noncitizen employees to provide more or different documents and submit to a more extensive review process than U.S. citizen.     Full Story Available

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