[Federal Register Volume 88, Number 230 (Friday, December 1, 2023)]
[Notices]
[Page 83970]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-26457]


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DEPARTMENT OF LABOR

Employment and Training Administration


Notice of the Federal Unemployment Tax Act (FUTA) Credit 
Reductions Applicable for 2023

    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, New York, and the US 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 2023. However, Connecticut and 
Illinois repaid their outstanding advances before November 10, 2023. As 
a result, employers in these two states are not subject to a FUTA 
credit reduction for 2023. California and New York did not repay their 
outstanding advances before November 10, 2023. Therefore, employers in 
these states are subject to a FUTA credit reduction of 0.6 percent for 
2023.
    USVI has experienced outstanding advances on January 1 for many 
years. 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 2023. However, because USVI 
has had an outstanding advance on each January 1 from 2010 through 
2023, and maintained an outstanding balance on November 10, 2023, 
employers in USVI are subject to a FUTA credit reduction of 3.9 percent 
in 2023.

Lenita Jacobs-Simmons,
Deputy Assistant Secretary for Employment and Training Administration.
[FR Doc. 2023-26457 Filed 11-30-23; 8:45 am]
BILLING CODE 4510-FW-P