The Unemployment Insurance program at the federal and state levels is funded by employer payroll taxes. The weak economy is impacting state unemployment insurance trust funds across the nation setting the stage for unemployment insurance increases on business. In her article in the Journal of State Taxation, Lori Roberts explores these negative effects on the state’s ability to fund unemployment insurance including a list of states that are in jeopardy of losing their Federal Unemployment Tax Act (FUTA) credit.
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This story is from the CCH’s monthly Focus on Tax newsletter, which provides advise and guidance on federal and state tax issues for tax and accounting professionals.
Read this article from CCH’s Journal of Taxation of Financial Products