South Carolina and Michigan Are the Credit Reduction States for 2010
In addition to Michigan, the South Carolina Department of Employment and Workforce has announced that South Carolina is also a FUTA credit reduction state for 2010.
Maximum Tax Increase Is $21 per Employee
Since this is South Carolina’s first year as a credit reduction state, the credit reduction will be 0.3% or a maximum of $21 per employee. This is calculated by multiplying the wage base of $7,000 by the credit reduction of 0.3%.
Michigan, South Carolina and Indiana Are Credit Reduction States for 2010
As noted elsewhere and in the comments, the three credit reduction states for 2010 are Michigan, South Carolina, and Indiana. Unless Congress changes the rules or states make significant changes, as many as thirty-eight states may be credit reduction states in 2011.
Vision Payroll Will Calculate the Credit Reduction for All South Carolina Clients
Contact Vision Payroll if you have any further questions on the South Carolina credit reduction.