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FUTA Notice

New Members

October 5, 2021


Dear Third-Party Administrator/Employer,

Based on guidance provided by the United States Department of Labor, the Massachusetts Department of Unemployment Assistance has determined that contributions paid for the COVID-19 Recovery Assessment are not FUTA-certifiable. Therefore, the COVID-19 Recovery Assessment contributions paid will not be included in employers’ 940 Certification.

This does not impact employers’ maximum FUTA credit of 5.4%. Generally, if an employer paid wages subject to state unemployment tax, they may receive a credit of up to 5.4% of FUTA taxable wages when they file their Form 940. According to 26 U.S. Code § 3302, employers are entitled up to the maximum credit if they paid their state unemployment taxes in full, on time, and the state is not a credit reduction state. Massachusetts is compliant with FUTA and is not a credit reduction state.

Please contact Employer Reports if you have any questions.


Thank you,

Department of Unemployment Assistance

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