[Federal Register Volume 84, Number 229 (Wednesday, November 27, 2019)]
[Notices]
[Pages 65423-65424]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-25742]


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DEPARTMENT OF LABOR

Employment and Training Administration


Notice of the Federal Unemployment Tax Act (FUTA) Credit 
Reduction Applicable in 2019

ACTION: Notice.

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    Sections 3302(c)(2)(A) and 3302(d)(3) of the FUTA provide that 
employers in a state that has outstanding advances under Title XII of 
the Social Security Act on 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 advances remain on 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 1 and has a balance on 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.
    Employers in the U.S. Virgin Islands (USVI) were potentially liable 
for the additional credit reduction under Section 3302(c)(2)(C) of 
FUTA. The jurisdiction applied for the waiver of this additional credit 
reduction. The Employment and Training Administration determined that 
USVI met all of the criteria of the section necessary to qualify for 
the waiver of the additional credit reduction. Therefore employers in 
USVI will have no

[[Page 65424]]

additional credit reduction applied for calendar year 2019. However, as 
a result of having outstanding advances on each January 1 of 2010 
through 2019, which had outstanding balances on November 10, 2019, 
employers in USVI are subject to a FUTA credit reduction of 2.7 percent 
in 2019.

John Pallasch,
Assistant Secretary for Employment and Training.
[FR Doc. 2019-25742 Filed 11-26-19; 8:45 am]
 BILLING CODE 4510-FW-P