New York is Not a Credit Reduction State
For the first time in recent years, New York will not be a credit reduction state for federal unemployment tax purposes for the 2025 tax year.
The IRS has released the final version of Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return, and Schedule A (Form 940) and instructions, which confirm that employers in New York will receive the full credit for state unemployment taxes, which means that the net federal unemployment tax rate will be 0.6% of the first $7,000 of wages for each employee.
In our upcoming seminars, we will discuss this and many other strategies and logistics related to the upcoming tax season, along with details and guidance for the biggest federal tax changes in years.
Are you registered for one of our upcoming seminars in January? If you have not yet attended and are not already registered, register here so you’ll be fully prepared with what you need to know, including the major new federal tax law enacted on July 4th.