What is a Credit Reduction State
Version 3.1 by jackb on 2023/10/31 16:16
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.