Important Update: Increase in FUTA Tax for 2023! - Palma Financial

We are reaching out with an URGENT UPDATE that affects your business if you have employees in California and New York.

For 2023, The Federal Unemployment Tax Act (FUTA) has announced a retroactive increase in the credit reduction for employers in these states. This change means an additional 0.6% tax on 2023 wages.

To put it into perspective, a business with 50 employees could face an increased tax burden of up to $2100.

Why This Matters:

  1. Increased Financial Responsibility: California and New York employers will face a heightened tax burden.
  2. Credit Reductions: States with unresolved federal advances are subjected to these increases, as outlined in FUTA Sections 3302(c)(2) and 3302(d)(3).

Your Action Plan:

  • Immediate Review and Budgeting: It’s crucial to review your current financial plans and adjust your budget for this increased liability.
  • Stay Informed: We will update you with the exact tax figures as soon as they are available.

Looking Ahead to 2024 – Proactive Planning:

To safeguard your business in 2024, early and strategic planning is essential. Our team is at the forefront, ready to guide you through these changes with effective strategies and confident navigation.

Together, we can transform these challenges into opportunities for your business’s growth and stability.

Contact us today to schedule a consultation. Let’s proactively plan for a successful and financially stable 2024.

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