FUTA

On December 10, 2012, Strategic Services on Unemployment and Workers’ Compensation, an association exclusively devoted to representing the interests of the business community on unemployment insurance and workers' compensation public policy issues, sent a letter to majority and minority leaders in the House and Senate, as well as the Chairman and Ranking Member of the House Committee on Ways and Means, urging Congressional members not to allow an increase in the Federal Unemployment Tax Act (FUTA) tax base or rate. The letter notes that state and federal payroll taxes are already increasing because of the record levels of UI claims from the Great Recession.

In addition to keeping FUTA tax rates at their current levels, the letter also urges Congress to prevent an extension in restrictions on states in adopting policies that would reduce the average weekly benefit amount in states that have insolvent UI trust funds as they seek state legislation to make their accounts solvent. The letter finally calls for Congress not to increase direct spending from UI trust fund accounts.