What is a Credit Reduction State

Last modified by Derek K on 2024/02/07 22:29

A state that has not repaid money it borrowed from the federal government to pay unemployment benefits is called a Credit Reduction State

The U.S. Department of Labor determines which states are Credit Reduction States.

The current Credit Reduction States will have a Reduction Rate shown on the Schedule A of the 940 Form.

Related Pages:

Non-credit Reduction States on 940 Schedule A Form

Read the requirement for 940 Schedule A.

Increasing Amounts for Credit Reduction States

Read what happens if the state is a Credit Reduction State.

What are the Credit Reduction States?

Read which states are considered Credit Reduction States.