See how much extra your California business pays in federal unemployment taxes
Enter your number of employees to see how much extra you pay in California.
California has not repaid its federal unemployment insurance loans, triggering a FUTA credit reduction. In 2025, California employers pay an extra 1.2% on the first $7,000 of each employee's wages.
The Math:
$7,000 × 1.2% = $84 extra per employee
The credit reduction increases each year the debt remains unpaid:
| Year | Credit Reduction | Extra Cost/Employee |
|---|---|---|
| 2023 | 0.6% | $42 |
| 2024 | 0.9% | $63 |
| 2025 | 1.2% | $84 |
| 2026 (projected) | 1.5% | $105 |
| 2027 (projected) | 1.8% | $126 |