Ohio Employers to Pay More FUTA on 2014 Q4 Tax Returns– January 20, 2015 by Hannah Prengler

As a result of Ohio’s failure to repay outstanding federal loans related to the state’s unemployment insurance, Ohio employers will be unable to claim the maximum state unemployment tax credits on their 2014 federal unemployment tax (FUTA) return. Consequently, employers will experience an increase of up to $126 in FUTA tax per Ohio employee on their 2014 fourth quarter Form 940.

Other credit reduction states/territories named by the U.S. Department of Labor (DOL) for defaulting on their loans includes, California, Connecticut, Indiana, Kentucky, New York, North Carolina and the Virgin Islands. Instead of the typical net FUTA tax rate of 0.6%, employers in these areas will pay more, as outlined in the schedule below. Resulting rates are based on the number of years each state has been in default on its unemployment insurance loans.


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