Virgin Islands Facing Potential FUTA Credit Reduction for 2019
The U.S. Department of Labor (DOL) has released its list of potential FUTA credit reduction states and territories for 2019. The Virgin Islands continues to have an outstanding Federal Unemployment Account (FUA) loan and might be subject to a FUTA credit reduction for 2019. It is the only state/territory listed.
The Virgin Islands has had a credit reduction in each of the past eight years (2011-2018). For 2018, the Virgin Islands credit reduction was 2.4%.
For 2019, the Virgin Islands potential basic reduction could be 2.7%. With the Benefit Cost Rate (BCR) add-on of 1.1%, the total credit reduction could be 3.8%. The Virgin Islands can apply to the DOL for a waiver of the BCR add-on by July 1, 2019. The 2019 determination will be made after the FUA loan repayment due date of November 10, 2019.
Interested in more state and local payroll coverage? APA’s PayState Update eNewsletter is perfect for you.