IRS Form 940 Schedule A Multi-State Employer and Credit Reduction Information

IRS Form 940 Schedule A Multi-State Employer and Credit Reduction Information

What Is IRS Form 940 Schedule A?

IRS Form 940 Schedule A, Multi-State Employer and Credit Reduction Information, is a supplementary instrument used by a taxpayer to figure out their annual federal unemployment tax. This document plays a secondary role in comparison with the main form you are supposed to file to report the unemployment tax you owe to the government, IRS Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return - use it to compute the tax and enclose it with the tax return before the deadline (January 31 of the year that follows the year described in the papers).

This schedule was released by the Internal Revenue Service (IRS) in 2023, rendering older editions of the document outdated. An IRS Form 940 Schedule A fillable version is available for download through the link below.

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Form 940 Schedule A Instructions

Follow these guidelines to fill out IRS Form 940 Schedule A:

  1. Before you prepare the documentation, make sure you have an unemployment account in every state where you paid salaries to your employees; if you do not have one, reach out to an unemployment agency to set it up. Add your legal name and the employer identification number. Mark the boxes next to abbreviations of states where you were required to pay unemployment tax - you have to do it for states where the credit reduction rate is zero.

  2. Specify the total amount of wages subject to taxation for every state - be careful not to include the wages that were not subject to state unemployment tax. Write down the reduction rate and record the credit reduction. Note that in most instances, the majority of lines are supposed to remain blank - skip the states if you did not pay any tax in them.

  3. Calculate the total amount of credit reduction - you have to combine all the amounts you have listed in the form. The result has to be included on IRS Form 940 before you submit the paperwork. Do not forget to file a copy of this schedule with the main tax return you prepare to outline the unemployment tax you paid. It is advised to fill out an extra copy of the document so that you can retain it in your records with other tax documentation. It is advised to fill out and submit the schedule online so opt for e-filing if you can.

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Download IRS Form 940 Schedule A Multi-State Employer and Credit Reduction Information

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