FUTA Credit Reduction 2025: What Staffing Firms Need to Know

The FUTA credit reduction for 2025 may increase federal unemployment tax costs for employers operating in certain states. When states borrow from the federal government to fund unemployment benefits and fail to repay those loans in time, employers in those states receive a reduced FUTA tax credit. Staffing firms with large payrolls should understand which states are affected, how the credit reduction works, and how these changes may impact payroll costs and budgeting for the year ahead.
Missouri Paid Sick Leave Law (Proposition A) Effective May 2025

Missouri’s new paid sick leave law, approved by voters under Proposition A, will require many employers to provide earned paid sick time beginning May 1, 2025. The law establishes minimum accrual standards, usage limits, and employee notification requirements that businesses must follow. Employers operating in Missouri should review their leave policies and payroll procedures to ensure they are prepared to comply with the new statewide sick leave requirements.