FUTA Credit Reductions for 2025: States Meet Criteria, Some Repaid Advances

Summary

The IRS has announced that employers in California, Connecticut, New York, and the U.S. Virgin Islands may be subject to a reduction in FUTA tax credits for 2025 due to outstanding Social Security Act advances. However, Connecticut and New York have repaid their advances before November 10, 2025, eliminating the credit reduction for these states.