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A slight reduction in Payroll Taxes

It isn't a lot but every little bit helps.

The Federal Unemployment Tax Act surcharge of 0.2%, which was originally enacted in 1976, expired on June 30, 2011.

This means that the FUTA rate for employers went to 6.0% starting on July 1, 2011.

The IRS says that they are currently working to revise Form 940, Employer’s Annual Federal Unemployment Tax Return, to accommodate the two different rates for 2011 and they say that the form will be available before the Jan. 31, 2012, due date.

The expiration of the surcharge will not affect current or future unemployment benefits but slightly reduces what employers have to pay.  That is always good news!

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