Vermont Businesses to Be Impacted by FUTA Changes

For years, we were able to say that the Federal Unemployment Tax Act (FUTA) is $56 for each employee that makes more than $7,000.  With the reduction in the FUTA rate to 6% it is now $42.  However, because Vermont is a “Credit Reduction” state, Vermont employers will have to pay an additional $21.  This works out to $63 per employee that makes more than $7,000.

Also, please note that if you use QuickBooks you will need to run the most recent update release in order for QuickBooks to calculate the correct tax.

For more information on FUTA tax please visit:  http://www.dh-cpa.com/client_media/files/pdf/FUTA.pdf

To view a video explaining the changes please visit:  http://www.irsvideos.gov/SmallBusinessTaxpayer/Employers/FUTACreditReduction

Dawn Grenn, CPA
Tax Manager
Davis & Hodgdon Associates CPAs

For more information please call our Williston Vermont office at 802-878-1963 or email [email protected].  Davis & Hodgdon Associates has counseled businesses in the Burlington metro-area on issues such as these for more than 20 years.