The “FUTA surtax” was finally laid to rest this week. After 35 years and 8 separate extensions, the “temporary” tax expired and was NOT renewed this time, providing a little tax relief to employers.
I say “little” because it never was a huge tax. The 0.2% FUTA surtax was enacted in 1976 for the purpose of paying for unemployment benefits following the recession of the early 1970s. Mission accomplished by 1987, but the tax stayed on the books. Dave Camp of the House Ways and Means Committee led the opposition to renewal of the tax. Current or future unemployment benefits will not be affected.