IRS 940 - Schedule A 2024-2025 free printable template

Then enter the total credit reduction on Form 940 line 11. Example 1 You paid 20 000 in wages to each of three employees in State A. The credit reduction applies only to tax. In this case you would enter 189. 00 in the Total Credit Reduction box and then enter that amount on Form 940 line 11. State A is subject to credit reduction at a rate of 0. 009 0. 9. Because you paid wages in a state that is subject to credit reduction you must complete Schedule A and file it with Form 940. Schedule A...

How to fill out irs 940 for form

How to fill out IRS 940 - Schedule A

1. Obtain IRS Form 940, Schedule A from the IRS website or your tax professional.
2. Review the instructions to ensure you understand the requirements for this schedule.
3. In Part 1, provide your business information including employer identification number (EIN) and name.
4. In Part 2, indicate the number of employees and wages paid to those employees for the year.
5. In Part 3, complete each line by filling in the applicable boxes related to tax exemptions.
6. Double-check all entries for accuracy.
7. Sign and date the form before submitting it along with Form 940.

Who needs IRS 940 - Schedule A?

1. Employers who pay $1,500 or more in wages in a calendar quarter.
2. Employers who have one or more employees for any part of a day in any week during the year.
3. Employers who are required to report and pay federal unemployment tax.

• Who files Schedule A (Form 940)?
• What is the Purpose of Schedule A (Form 940)?
• When is Schedule A Due?
• • How do I Fill out Schedule A?
  • Where do I Send Schedule A?

Who files Schedule A (Form 940)?

An employer must file Form 940 if it

• paid wages of $1,500 or more to employees in any calendar quarter during 2015 or 2016, or
• had one or more employees for at least some part of a day in any 20 or more different weeks in 2015 or 20 or more different weeks in 2016. All full-time, part-time, and temporary employees should be counted.

For 2016, there are credit reduction states. If the employer paid any wages that are subject to the unemployment compensation laws of a credit reduction state, its credit against federal unemployment tax will be reduced based on the credit reduction rate for that credit reduction state. The employer uses Schedule A (Form 940) to figure the credit reduction.

If the employer is a multi-state employer, it must check the box on line 1b of Form 940, fill out Schedule A and attach it to your Form 940.

What is the Purpose of Schedule A (Form 940)?

Employers use Form 940 for the purpose of reporting the annual Federal Unemployment Tax Act (FTA) tax. Together with state unemployment tax systems, the FTA tax provides funds for paying unemployment compensation to workers who have lost their jobs. Most employers pay both a federal and a state unemployment tax. Only employers pay FTA tax. Don't collect or deduct FTA tax from your employees' wages.

The FTA tax applies to the first $7,000 paid to each employee during a calendar year after subtracting any payments exempt from FTA tax.

When is Schedule A Due?

The due date for filing Form 940 for 2016 including Schedule A is January 31st, 2017. If you deposited all your FTA tax when it was due, you may file Form 940 until February 10th, 2017.

How do I Fill out Schedule A?

Step 1. Place an “X” in the box of every state where you had to pay state unemployment taxes this year, even if the state's credit reduction rate is zero.

Step 2. In the FTA Taxable Wages box, enter the total FTA taxable wages that you paid in that state. (The FTA wage base for all states is $7,000.) Do not include in the FTA Taxable Wages box wages that were excluded from state unemployment tax.

Step 3. To calculate the total credit reduction, add up all the Credit Reduction boxes and enter the amount in the Total Credit Reduction box. Finally, enter the total credit reduction on Form 940, line 11.

Where do I Send Schedule A?

The IRS Instructions for Form 940 contain addresses where you can send Form 940 and Schedule A attached to it. You can find the instructions at https://www.irs.gov/pub/irs-pdf/i940.pdf

Video instructions and help with filling out and completing form 940 fillable

Instructions and Help about schedule a 940 form

IRS Form 940 Script Hi everyone, I'm Priyanka Prakash, senior staff writer at Fund era. Today, I'll be showing you how to fill out Form 940: Employer’s Annual Federal Unemployment Tax Return, more commonly called the FTA tax return. You must file this form if you paid $1,500 or more in wages to employees during a calendar quarter of this year or the previous year, or if you employed anyone for at least 20 weeks of the year. This form is due on January 31. However, you get an additional 10 calendar days to file if you deposited all your FTA taxes on time throughout the year. Now, most employers have to pay FTA at the federal level and state unemployment tax. As you’ll soon see, the two are closely related. As a reminder, FTA tax is only paid by employers, so this is not a tax that you would deduct from your employees’ wages. Okay, let's get started with the form. The top of the form is pretty straightforward. You're just going to note down your business contact information, including the EIN, business name, and business address. I'll provide this information for a fictional business called ABC Bakery LLC. If...

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What is IRS 940 - Schedule A?

IRS 940 - Schedule A is a form used by employers to report their state unemployment tax (SUTA) credits for the federal unemployment tax (FUTA) return, allowing them to claim credit for SUTA paid to states.

Who is required to file IRS 940 - Schedule A?

Employers who are liable for FUTA tax and have made contributions to their state's unemployment insurance must file IRS 940 - Schedule A if they want to claim the SUTA credit.

How to fill out IRS 940 - Schedule A?

To fill out IRS 940 - Schedule A, employers need to provide information regarding their state unemployment tax contributions and detail their eligibility for SUTA credits, following the instructions provided with the form.

What is the purpose of IRS 940 - Schedule A?

The purpose of IRS 940 - Schedule A is to calculate and claim the allowable credit for state unemployment taxes paid against the federal unemployment tax liability.

What information must be reported on IRS 940 - Schedule A?

Employers must report their state unemployment payment details, including the total amount of state unemployment taxes paid, the SUTA credit calculation, and the states in which they operate.