Effective March 3, 2025, Wrapbook will collect a new Benefit Cost Rate (BCR) add-on tax for wages paid in California, New York, and Connecticut. The BCR add-on is a supplemental employer tax related to Federal Unemployment Tax Act (FUTA) charges.

BCR add-on rates & annual employer maximums, per employee:

• California: 3.7% ($259 max)
• New York: 1.1% ($77 max)
• Connecticut: 0.8% ($56 max)

What you need to know:

• BCR add-on applies to all wages processed in these states going forward (up to the $7,000 federal wage base).
• There is a possibility that the BCR add-on for 2025 will be waived at the federal level. The waiver decision should be made by September 30, 2025. We will inform you of the waiver decision as soon as we have it.
• If the BCR add-on is waived, we will refund the BCR add-on fees collected.
• If the BCR add-on is not waived, we may retroactively collect for this period for employees who worked January 1 - March 2, but did not work a sufficient amount after March 2 to reach the $7,000 wage base.

Based on crew workers continuing to be employed throughout the year in these states, we believe we can shoulder this burden together and come through stronger.

Questions? Contact us.