Year End Facts for You, part 2

California EITC (Earned Income Tax Credit)

The state of California requires that a separate notice be sent to employees advising them to file for the Federal Earned Income Tax Credit if they are eligible.  Effective with this year end, California employers must also advise their employees that they may be eligible for the California Earned Income Tax Credit.  This credit is offered in addition to the Federal Earned Income Tax Credit.  Form FTB-3514 plus a California Income Tax return will assist any eligible taxpayer.  See more about this credit here.

Ohio FUA Repayment

The state of Ohio has repaid its FUA (Federal Unemployment Account) loan balance.  These loans are available to states that have depleted their unemployment account balances.  As long as Ohio does not borrow any more money from the fund before the deadline of November 10, 2016, Ohio can avoid being a FUTA credit reduction state for the 2016 reporting year.  This would mean that Ohio employers would be able to take the full FUTA credit of 5.4% as long as all of their state unemployment returns were filed and paid timely during 2016.

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