---
title: Virgin Islands Facing Potential FUTA Credit Reduction for 2019
description: The Virgin Islands may be subject to a FUTA credit reduction for 2019 according to DOL.
---

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# [Virgin Islands Facing Potential FUTA Credit Reduction for 2019](https://blogs.payroll.org/pay-news-now/virgin-islands-facing-potential-futa-credit-reduction-for-2019)

 Written by [PayrollOrg Staff](https://blogs.payroll.org/pay-news-now/author/apa-staff) | Feb 14, 2019 4:14:40 PM

The U.S. Department of Labor (DOL) has released its list of [**potential FUTA credit reduction states and territories for 2019**](https://oui.doleta.gov/unemploy/futa_credit.asp). The Virgin Islands continues to have an ****[outstanding Federal Unemployment Account (FUA) loan](https://oui.doleta.gov/unemploy/budget.asp) ****and might be subject to a FUTA credit reduction for 2019. It is the only state/territory listed.

The Virgin Islands has had a credit reduction in each of the past eight years (2011-2018). For 2018, the Virgin Islands credit reduction was 2.4%.

For 2019, the Virgin Islands potential basic reduction could be 2.7%. With the Benefit Cost Rate (BCR) add-on of 1.1%, the total credit reduction could be 3.8%. The Virgin Islands can apply to the DOL for a waiver of the BCR add-on by July 1, 2019. The 2019 determination will be made after the FUA loan repayment due date of November 10, 2019.

Interested in more state and local payroll coverage? APA’s *[**PayState Update**](https://ebiz.americanpayroll.org/ebusiness/ProductCatalog/Product.aspx?ID=19)* eNewsletter is perfect for you.

[View full post](https://blogs.payroll.org/pay-news-now/virgin-islands-facing-potential-futa-credit-reduction-for-2019)

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