Great news for employers in Connecticut!
According to the U.S. Department of Labor’s trust fund status posting, Connecticut has paid off the balance of its Title XII loan.
The payoff should impact employers in Connecticut seeing a reduction in the 2016 FUTA tax rate down to the normal 0.6%.
The FUTA revenue from 2015 was higher than expected, while the state unemployment compensation benefit payout was lower than expected.
The official release from Connecticut is anticipated to verify the pay off and impact on FUTA tax rates for 2016.
The US DOL update on the website for UI Trust Fund Loan balances shows no balance for CT (see below).
Trust Fund Loans
- Outstanding Loans from the Federal Unemployment Account.
Balances as of March 24, 2016:
Assuming Kentucky pays off its small balance before November 10th, which should be easily accessible from their first quarter revenue. Therefore, California, Ohio and the Virgin Islands would be left paying the higher FUTA tax for 2016.
Furthermore, while this is great news for employers in Connecticut concerning reduced FUTA tax, the need for the state to address the solvency of the state unemployment trust fund in anticipation of the next recession is critical.
Source: 2016 data via http://www.americanpayroll.org/home/