UNEMPLOYMENT INSURANCE PROGRAM LETTER No.26-08
Unemployment Insurance Program Letter No.26-08
Internal Revenue Service Bulletin 2007-39 - Changes to Treatment of Disregarded Entities That Affect the FUTA Certification Process
To notify states of imminent changes by the Internal Revenue Service (IRS) that will affect reporting Federal Unemployment Tax Act (FUTA) payments by certain employers. The changes, which will become effective for wages paid on or after January 1, 2009, will affect single-member limited liability companies (SMLLC) or qualified subchapter S subsidiaries (QSub), who are “disregarded” by the IRS as entities separate from their owners for Federal tax purposes (disregarded entities).
STATE WORKFORCE AGENCIES
BRENT R. ORRELL
Deputy Assistant Secretary
States should contact the appropriate Regional Office for additional information.