Source: Spidell CA Taxletter; October 2018

Although not yet officially announced by the US Department of Labor, CA has announced that it has finally paid off its debt to the federal government stemming from an insolvent unemployment tax fund.  If all goes as expected, the IRS FUTA rate on the first $7,000 of CA employee wages will go from 2.7% to .6% for 2018.  That’s a reduction of $147 per employee making $7,000 or more in wages.

The US Department of Labor has until November 10, 2018 to make its formal announcement.