FUTA Rate Change
April 17 |
By Ryan McBee
Currently, Indiana, Michigan and South Carolina have outstanding debt related to their unemployment funds and are “credit reduction states.” The FUTA credit reduction results in a net increase in FUTA taxes and applies to all Indiana contributing employers (except to Indian Tribes, nonprofit organizations, and governmental entities.
Here are the steps to change the FUTA rate to the correct rate in Dynamics GP: Go to: (Tools | Setup | Payroll | Unemployment Tax) this will give you the Unemployment Tax Setup Window. Where it says Tax Code, enter FED, it will display the default numbers. Then where it says Tax Rate you can change the .80000% to 60000% and click save. This will save the information as the new correct percent for FUTA.