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