CPI-HR ANNOUNCEMENTS

Urgent Message

Under the provisions of the American Federal Unemployment Tax Act (FUTA), a Federal tax is levied on employers covered by the Unemployment Insurance program at a current rate of 6.0% on wages up to $7,000 a year paid to a worker. The law, however, provides a credit against federal tax liability of up to 5.4% to employers who pay state taxes timely under an approved state UI program. Accordingly, in states meeting the specified requirements, employers pay an effective Federal tax of 0.6%, or a maximum of $42 per covered worker, per year.

The credit against the Federal tax may be reduced if the state has an outstanding advance (commonly called a “loan”). When states lack the funds to pay UI benefits, they may obtain loans from the federal government. To assure that these loans are repaid, and in accordance with Title XII of the Social Security Act, the federal government is entitled to recover those monies by reducing the FUTA credit it gives to employers, which is the equivalent of an overall increase in the FUTA tax. When a state has an outstanding loan balance on January 1 for two consecutive years, and the full amount of the loan is not repaid by November 10 of the second year, the FUTA credit will be reduced until the loan is repaid. This process is commonly called FUTA Credit Reduction and was designed as an involuntary repayment mechanism. The reduction schedule is 0.3% for the first year and an additional 0.3% for each succeeding year until the loan is repaid. From the third year onward, there may be additional reduction(s) in the FUTA tax credit (commonly dubbed "add-ons").

As of November 11, 2011, there are 21 states that had outstanding UI federal loans and as a result, employers in these states will pay extra FUTA taxes that are effective retroactively to January 1, 2011:

Arkansas 0.3%

California 0.3%

Connecticut 0.3%

Florida 0.3%

Georgia 0.3%

Illinois 0.3%

Indiana 0.6%

Kentucky 0.3%

Michigan 0.9%

Minnesota 0.3%

Missouri 0.3%

North Carolina 0.3%

New Jersey 0.3%

Nevada 0.3%

New York 0.3%

Ohio 0.3%

Pennsylvania 0.3%

Rhode Island 0.3%

Virginia 0.3%

Virgin Islands 0.3%

Wisconsin 0.3%

The 2011 FUTA Tax will impounded from your bank account during the week of 1/30/2012. For those states with the rate of .3% the average amount per employee is $21.00

2011 End of Year Review

• Please review your 2012 Processing Calendars and Tax Verification Sheets and return them to CPI-HR indicating what changes need to be made. If there are NO Changes required please sign the forms, indicated no changes, and email or fax (440) 542-7812 to your CSR.
• Please review your W2 Audit reports to validate and contact your CSR to review any discrepancies.
• The Ohio Department of Job and Family Services have begun mailing out the new 2012 Ohio Unemployment Rates. Please be sure to send your 2012 rates to your CSR as soon as they are received so that CPI-HR can update your company 2012 Payroll Information.
• If you are planning an Adjustment or Bonus Run after your last scheduled payroll in 2011 has processed, please inform your CSR as soon as possible. This information will help CPI-HR to schedule when your 2011 W2’s will be produced. For those clients with no planned adjustments, your W2’s can be processed after your last payroll has run with delivery in early January 2012.

Urgent Message Regarding Processing Deadlines!

We strictly adhere to CPI-HR policy indicating our processing deadline is 2:00 p.m. EST. Payrolls submitted after this deadline will be included in the following day's bank file or subject to a late processing/bank file fee! Thank you for adhering to CPI-HR's policy. Email questions to payrollops@cpihr.com.

FEDERAL LABOR LAW UPDATE

The National Labor Relations Board has issued a Final Rule that requires employers to notify employees of their rights under the National Labor Relations Act (NLRA).Private-sector employers, including labor organizations, are now required to post the NLRA employee rights notice where other workplace notices are typically posted. This new poster must be posted no later than November 14, 2011. 

To order new posters please contact your CSR.

CPI-HR one of the Best Employers in Ohio!

Read more!

ARRA Subsidy:

Click here to access the form to send to your CSR.

The payroll login will automatically display in 20 seconds. If your browser does not automatically send you to the payroll login, click here.