If you are an employer with a work location in California, you may be subject to an additional federal unemployment tax for 2025.
California has had an outstanding federal loan balance since 2020 and did not repay all advances by the Nov. 10, 2025, deadline. As a result, the Federal Unemployment Tax Act (FUTA) credit will be reduced for employers in the state.
The first payroll with a pay date on or after Dec. 1, 2025, will include the additional FUTA payment for employees who work in California.
If you do not plan to process any payrolls on or after Dec. 1, 2025, please contact your Insperity® payroll specialist or tax specialist at hrcore.tax@insperity.com for assistance with a FUTA adjustment to help ensure compliance.
For more information about unemployment tax credit reductions, visit the Insperity Help Center.