FUTA in CA
You stated that since CA is a credit reduction state, their FUTA will be 2.1%. This is derived from the Schedule A. This 2.1% is added to the .6% from Line 8 of the 940 to equal 2.7% total FUTA for California employers.
To my knowledge, California pays a total of 2.1% of FUTA – period. This is not on top of 0.6% but in place of. All other states pay 0.6% of FUTA tax except for Puerto Rico which pays the same rate as California, 2.1%. I recommend that you consult with a tax expert to confirm this info.
Hope this helps.
Disclaimer: We spend hours researching and writing our articles and strive to provide accurate, up-to-date content. However, our research is meant to aid your own, and we are not acting as licensed professionals. We recommend that you consult with your own lawyer, accountant, or other licensed professional for relevant business decisions. Click here to see our full disclaimer.
Product or company names, logos, and trademarks referred to on this site belong to their respective owners.