[Federal Register Volume 87, Number 229 (Wednesday, November 30, 2022)]
[Notices]
[Page 73567]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-26085]


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DEPARTMENT OF LABOR

Employment and Training Administration


Notice of the Federal Unemployment Tax Act (FUTA) Credit 
Reductions Applicable for 2022

    Sections 3302(c)(2)(A) and 3302(d)(3) of 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) 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, Illinois, Massachusetts, Minnesota, New 
Jersey, New York, Pennsylvania, and the U.S. Virgin Islands (USVI) had 
outstanding advances on January 1 for two or more consecutive years and 
employers in these states were potentially subject to a FUTA credit 
reduction in 2022. However, Colorado, Massachusetts, Minnesota, New 
Jersey, and Pennsylvania repaid their outstanding advances before 
November 10, 2022. As a result, employers in these states are not 
subject to a FUTA credit reduction for 2022. California, Connecticut, 
Illinois, and New York did not repay their outstanding advances before 
November 10, 2022. Therefore, employers in these states are subject to 
a FUTA credit reduction of 0.3 percent for 2022.
    Employers in 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 and the Employment 
and Training Administration determined that USVI met each of the 
criteria necessary to qualify for the waiver of the additional credit 
reduction. Therefore, employers in USVI will have no additional credit 
reduction applied for calendar year 2022. However, because USVI has had 
an outstanding advance on each January 1 from 2010 through 2022, and 
maintained an outstanding balance on November 10, 2022, employers in 
USVI are subject to a FUTA credit reduction of 3.6 percent in 2022.

Brent Parton,
Acting Assistant Secretary for Employment and Training.
[FR Doc. 2022-26085 Filed 11-29-22; 8:45 am]
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