Credit Reduction Definition

Credit Reduction Short Definition

U.S. states that have borrowed federal funds to meet their state unemployment obligations and have failed to repay the loans within the allotted time period. As a result, employers in these states will owe more in federal unemployment tax (FUTA) on their 940 tax return.

Related Article:
What Is FUTA Tax?

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Patriot Software | Dec 29, 2014

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