[Federal Register Volume 81, Number 226 (Wednesday, November 23, 2016)]
[Notices]
[Page 84618]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-28238]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF LABOR

Employment and Training Administration


Notice of Decisions on States' Applications for Relief From Tax 
Credit Reductions Provided Under Section 3302 of the Federal 
Unemployment Tax Act (FUTA) Applicable in 2016

AGENCY: Employment and Training Administration, Labor.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: Sections 3302(c)(2)(A) and 3302(d)(3) of the FUTA provide that 
employers in a State that has an outstanding balance of advances under 
Title XII of the Social Security Act at the beginning of January 1 of 
two or more consecutive years are subject to a reduction in credits 
otherwise available against the FUTA tax for the calendar year in which 
the most recent such January 1 occurs, if a balance of advances remains 
at the beginning of November 10 of that year. Further, section 
3302(c)(2)(C) of FUTA provides for an additional credit reduction for a 
year if a State has outstanding advances on five or more consecutive 
January firsts and has a balance at the beginning of November 10 for 
such years. Section 3302(c)(2)(C) also provides for waiver of this 
additional credit reduction and substitution of the credit reduction 
provided in section 3302(c)(2)(B) if a state meets certain conditions.
    California, Connecticut, Ohio, and the Virgin Islands passed 
January 1, 2016 with outstanding Title XII advances and were 
potentially subject to FUTA credit reductions.
    California, Ohio, and the Virgin Islands applied for a waiver of 
the 2016 additional credit reduction under section 3302 (c)(2)(C) of 
FUTA and it has been determined that each one met all of the criteria 
of that section necessary to qualify for the waiver of the additional 
credit reduction. Further, the additional credit reduction of section 
3302(c)(2)(B) is zero for these States for 2016. Therefore, employers 
in these States will have no additional credit reduction applied for 
calendar year 2016.
    Connecticut and Ohio repaid all of their outstanding advance 
balances before the beginning of November 10, 2016. Therefore, 
employers in those States will have no reduction in FUTA offset credit 
for calendar year 2016.
    California and the Virgin Islands will have a credit reduction of 
1.8 for calendar year 2016.

Portia Wu,
Assistant Secretary for Employment and Training.
[FR Doc. 2016-28238 Filed 11-22-16; 8:45 am]
 BILLING CODE 4510-FW-P