FUTA Rate Change

The Federal Unemployment rate (FUTA) will change on July 1, 2011, from 6.2% to 6.0%. Most companies are eligible for a 5.4% credit, which reduces your effective FUTA rate from 0.8% to 0.6%. All of your FUTA liability gets reconciled when you file Form 940 at the end of the year. Your payroll service with Found Time has been updated to reflect this change, so no action is required on your part. If Congress makes additional changes, we'll stay on top of them.