In 2024, the state of Connecticut paid off its federal unemployment loan, causing the FUTA Supplemental rate to drop to 0%. However, as of January 1st, 2025, the state now has a new outstanding loan. Due to Connecticut’s borrowing history—four consecutive years between 2022 and 2025—the state will be subjected to a supplemental 1.2% on FUTA for the current tax year.

Accordingly, projects in Connecticut will see a 1.2% increase in FUTA Supplemental on all future payrolls. 

Please note that the change will only apply to payrolls going forward; we will not be back-collecting on any previously-run payrolls.

Questions? Reach out to us anytime at support@wrapbook.com.