Request a Consultation.
If you’d like to request a consultation, please complete the form below and we’ll be in touch soon!
FUTA Surcharge Expires1 min read
The IRS reminds employers that the Federal Unemployment Tax Act surcharge of 0.2% expired on June 30, 2011. This means that the FUTA rate for employers went to 6.0% starting on July 1, 2011.
The IRS is currently working to revise Form 940, Employer’s Annual Federal Unemployment Tax Return, to accommodate the two different rates and the form will be available before the Jan. 31, 2012, due date.
The surcharge was originally enacted in 1976, and Congress has extended it several times since. Unemployment benefits are not tied to the surcharge, so the expiration of the surcharge will not affect current or future unemployment benefits.
The IRS will post the Form 940 for the 2011 tax year, to the Forms and Publications section of IRS.gov and other relevant information, if any becomes available, about the FUTA surcharge on the Employment Taxes page.
If you are interested in understanding more about this new rate or how it may affect your business, please contact Simons Bitzer & Associates at (317) 782-3070. One of our team members will be happy to assist.
From the IRS website.
By Simons Bitzer
Here are a few additional articles you might be interested in:
Staff Accountant
JOB DESCRIPTION Position: Staff Accountant Department: Accounting Status: Full Time OVERALL SUMMARY OF POSITION: As a Staff Accountant, you will have the opportunity to help ensure that the firm’s clients receive high quality services on a timely basis by supporting...
Should You Elect Out of the New Partnership Audit Rules?
The Bipartisan Budget Act signed into law in 2015 and effective for partnership returns filed for taxable years beginning after 2017 has significant impacts on partnership audits. Most notably that audit adjustments are to be recognized in the year an audit is...
Senior Tax Accountant
JOB DESCRIPTION Position: Senior Tax Accountant Department: Tax Status: Full-time OVERALL SUMMARY OF POSITION: As the firm’s Tax Senior, this person will ensure that the firm’s clients receive high quality services and accurate tax returns on a timely basis along with...