[Federal Register Volume 79, Number 231 (Tuesday, December 2, 2014)]
[Notices]
[Pages 71449-71450]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-28328]


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DEPARTMENT OF LABOR

Employment and Training Administration


Notice of Decisions on States' Applications for Relief From Tax 
Credit Eductions Provided Under Section 3302 of the Federal 
Unemployment Tax Act (FUTA) Applicable in 2014

AGENCY: Employment and Training Administration, Labor.

ACTION: Notice.

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SUMMARY: Sections 3302(c)(2)(A) and 3302(d)(3) of the FUTA provide that 
employers in a State that has an outstanding balance of advances under 
Title XII of the Social Security Act at the beginning of January 1 of 
two or more consecutive years are subject to a reduction in credits 
otherwise available against the FUTA tax for the calendar year in which 
the most recent such January 1 occurs, if a balance of advances remains 
at the beginning of November 10 of that year. Further, section 
3302(c)(2)(C) of FUTA provides for an additional credit reduction for a 
year if a State has outstanding advances on five or more consecutive 
January firsts and has a balance at the beginning of November 10 for 
such years. Section 3302(c)(2)(C) also provides for waiver of this 
additional credit reduction and substitution of the credit reduction 
provided in section 3302(c)(2)(B) if a state meets certain conditions.
    The States of California, Indiana, Kentucky, Missouri, New York, 
North Carolina, Ohio, Rhode Island, South Carolina, Virgin Islands, and 
Wisconsin applied for a waiver of the 2014 additional credit reduction 
under section 3302(c)(2)(C) of FUTA and it has been determined that 
each of these

[[Page 71450]]

States met all of the criteria of that section necessary to qualify for 
the waiver of the additional credit reduction. Further, the additional 
credit reduction of section 3302(c)(2)(B) is zero for these States for 
2014. Therefore, employers in these States will have no additional 
credit reduction applied for calendar year 2014. In addition, Missouri, 
Rhode Island, and Wisconsin did not have balance of advances at the 
beginning of November 10, 2014. Therefore, employers in those States 
will have no reduction in FUTA offset credit for calendar year 2014.
    Section 3302(g) of FUTA provides that a State may avoid any 
reduction in credit for a year by meeting certain criteria. South 
Carolina applied for avoidance of the 2014 credit reduction under this 
section. It has been determined that South Carolina met all of the 
criteria of section 3302(g) and thus qualifies for credit reduction 
avoidance. Therefore, South Carolina employers will have no reduction 
in FUTA credit for calendar year 2014.

Portia Wu,
Assistant Secretary for Employment and Training.
[FR Doc. 2014-28328 Filed 12-1-14; 8:45 am]
BILLING CODE 4510-FW-P