FUTA Rate Reduction July 1st 2011

The current FUTA rate of 6.2% (which has been in effect a long time) includes a temporary surtax of .2% that expires June 30, 2011. (Unless Congress extends it, which doesn't seem to be the case.)

If you get the maximum credit of 5.4%, this has always meant a rate of .8% FUTA.  So, with the .2% reduction - effective July 1, 2011 you will have a FUTA tax rate of .6%.

I have run a July payroll in QuickBooks, and confirmed that the rate did indeed calculate at .6% correctly.

I realize that this is not something you may notice, but wanted to keep you informed.  Unless there is a change, this will complicate the 940 form at the end of the year... but we won't worry about that for now.