As you know, a Federal tax levied on employers covered but the Unemployment Insurance Program at a rate of 6.0% on annual wages paid up to $7000 per employee. With full credits in place, employers pay only .6% per covered employee, per year.
The credits can be reduced when a state has an outstanding advance or loan for two consecutive years, thereby allowing the Federal government to recover their monies directly from employers.
As a result of outstanding loans, tax reduction of .3% will be applied to wages paid in 2011 for 21 states, inculding California.
For more information please call Brett Adolph, 714.467.3434 x 231