My sources (not the DOL or IRS as of yet) are telling me that the following states will have a credit reduction for FUTA for 2014. The IRS has not released the Form 940 Schedule A as of this time but the source I have is pretty reliable so I will post just to give you a heads up. I will also post when the IRS releases the forms. The states are: California, Connecticut, Indiana, Kentucky, New York, North Carolina and Ohio. The list also includes the Virgin Islands. All will have a rate of 1.2% credit reduction for a net FUTA rate of 1.8% except for Connecticut and Indiana. Connecticut will have a credit reduction of 1.7% with a net FUTA rate of 2.3%. Indiana will have a credit reduction of 1.5% with a net FUTA rate of 2.1%. Again I will post the Form 940 and the Schedule A as soon as they are released.