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

What Is IRS Form 940 Schedule A?

This is a tax form that was released by the Internal Revenue Service (IRS) - a subdivision of the U.S. Department of the Treasury. The document is a supplement to IRS Form 940, Employer's Annual Federal Unemployment (Futa) Tax Return. As of today, no separate filing guidelines for the form are provided by the IRS.

Form Details:

  • A 2-page form available for download in PDF;
  • This form cannot be used to file taxes for the current year. Choose a more recent version to file for the current tax year;
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Download IRS Form 940 Schedule A "Multi-State Employer and Credit Reduction Information"

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Schedule A (Form 940) for 2018:
860312
Multi-State Employer and Credit Reduction Information
OMB No. 1545-0028
Department of the Treasury — Internal Revenue Service
See the
instructions on
Employer identification number (EIN)
page 2. File this
schedule with
Form 940.
Name (not your trade name)
Place an “X” in the box of EVERY state in which you had to pay state unemployment tax this year. For each state with
a credit reduction rate greater than zero, enter the FUTA taxable wages, multiply by the reduction rate, and enter the
credit reduction amount. Don't include in the FUTA Taxable Wages box wages that were excluded from state
unemployment tax (see the instructions for Step 2). If any states don't apply to you, leave them blank.
Postal
FUTA
Reduction
Postal
FUTA
Reduction
Credit Reduction
Credit Reduction
Abbreviation
Taxable Wages
Abbreviation
Taxable Wages
Rate
Rate
.
.
.
.
AK
NC
.
.
.
.
AL
ND
.
.
.
.
AR
NE
.
.
.
.
AZ
NH
.
.
.
.
CA
NJ
.
.
.
.
CO
NM
.
.
.
.
CT
NV
.
.
.
.
DC
NY
.
.
.
.
DE
OH
.
.
.
.
FL
OK
.
.
.
.
GA
OR
.
.
.
.
HI
PA
.
.
.
.
IA
RI
.
.
.
.
ID
SC
.
.
.
.
IL
SD
.
.
.
.
IN
TN
.
.
.
.
KS
TX
.
.
.
.
KY
UT
.
.
.
.
LA
VA
.
.
.
.
MA
VT
.
.
.
.
MD
WA
.
.
.
.
ME
WI
.
.
.
.
MI
WV
.
.
.
.
MN
WY
.
.
.
.
MO
PR
.
.
.
.
MS
VI
.
.
MT
Total Credit Reduction. Add all amounts shown in the Credit Reduction boxes. Enter the total
.
here and on Form 940, line 11
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 940.
Cat. No. 16997C
Schedule A (Form 940) 2018
Schedule A (Form 940) for 2018:
860312
Multi-State Employer and Credit Reduction Information
OMB No. 1545-0028
Department of the Treasury — Internal Revenue Service
See the
instructions on
Employer identification number (EIN)
page 2. File this
schedule with
Form 940.
Name (not your trade name)
Place an “X” in the box of EVERY state in which you had to pay state unemployment tax this year. For each state with
a credit reduction rate greater than zero, enter the FUTA taxable wages, multiply by the reduction rate, and enter the
credit reduction amount. Don't include in the FUTA Taxable Wages box wages that were excluded from state
unemployment tax (see the instructions for Step 2). If any states don't apply to you, leave them blank.
Postal
FUTA
Reduction
Postal
FUTA
Reduction
Credit Reduction
Credit Reduction
Abbreviation
Taxable Wages
Abbreviation
Taxable Wages
Rate
Rate
.
.
.
.
AK
NC
.
.
.
.
AL
ND
.
.
.
.
AR
NE
.
.
.
.
AZ
NH
.
.
.
.
CA
NJ
.
.
.
.
CO
NM
.
.
.
.
CT
NV
.
.
.
.
DC
NY
.
.
.
.
DE
OH
.
.
.
.
FL
OK
.
.
.
.
GA
OR
.
.
.
.
HI
PA
.
.
.
.
IA
RI
.
.
.
.
ID
SC
.
.
.
.
IL
SD
.
.
.
.
IN
TN
.
.
.
.
KS
TX
.
.
.
.
KY
UT
.
.
.
.
LA
VA
.
.
.
.
MA
VT
.
.
.
.
MD
WA
.
.
.
.
ME
WI
.
.
.
.
MI
WV
.
.
.
.
MN
WY
.
.
.
.
MO
PR
.
.
.
.
MS
VI
.
.
MT
Total Credit Reduction. Add all amounts shown in the Credit Reduction boxes. Enter the total
.
here and on Form 940, line 11
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 940.
Cat. No. 16997C
Schedule A (Form 940) 2018
Instructions for Schedule A (Form 940) for 2018:
860412
Multi-State Employer and Credit Reduction Information
Specific Instructions: Completing Schedule A
Step 1. Place an “X” in the box of every state (including the
Note: Don't enter your state unemployment wages in the FUTA
District of Columbia, Puerto Rico, and the U.S. Virgin
Taxable Wages box.
Islands) in which you had to pay state unemployment taxes
Then multiply the total FUTA taxable wages by the reduction
this year, even if the state's credit reduction rate is zero.
rate.
Note: Make sure that you have applied for a state reporting
Enter your total in the Credit Reduction box at the end of the
number for your business. If you don't have an unemployment
line.
account in a state in which you paid wages, contact the state
unemployment agency to receive one. For a list of state
Step 3. Total credit reduction
unemployment agencies, visit the U.S. Department of Labor's
To calculate the total credit reduction, add up all of the Credit
website at https://oui.doleta.gov/unemploy/agencies.asp.
Reduction boxes and enter the amount in the Total Credit
The table below provides the two-letter postal abbreviations
Reduction box.
used on Schedule A.
Then enter the total credit reduction on Form 940, line 11.
Postal
Postal
Example 1
Abbreviation
Abbreviation
State
State
You paid $20,000 in wages to each of three employees in State
AL
Montana
MT
Alabama
A. State A is subject to credit reduction at a rate of 0.003 (.3%).
Alaska
AK
Nebraska
NE
Because you paid wages in a state that is subject to credit
Arizona
AZ
Nevada
NV
reduction, you must complete Schedule A and file it with
Arkansas
AR
New Hampshire
NH
Form 940.
California
CA
New Jersey
NJ
Total payments to all employees in State A
.
.
.
.
.
. $60,000
Colorado
CO
New Mexico
NM
Payments exempt from FUTA tax
Connecticut
CT
New York
NY
(see the Instructions for Form 940) .
.
.
.
.
.
.
.
.
.
$0
Delaware
DE
North Carolina
NC
Total payments made to each employee in
District of Columbia
DC
North Dakota
ND
excess of $7,000 (3 x ($20,000 - $7,000)) .
.
.
.
.
.
. $39,000
Florida
FL
Ohio
OH
Total FUTA taxable wages you paid in State A entered in
Georgia
GA
Oklahoma
OK
the FUTA Taxable Wages box ($60,000 - $0 - $39,000) .
.
. $21,000
Hawaii
HI
Oregon
OR
Credit reduction rate for State A
.
.
.
.
.
.
.
.
.
0.003
Idaho
ID
Pennsylvania
PA
Total credit reduction for State A ($21,000 x 0.003) .
.
.
.
. $63
Illinois
IL
Rhode Island
RI
Indiana
IN
South Carolina
SC
Don't include in the FUTA Taxable Wages box wages
!
Iowa
IA
South Dakota
SD
in excess of the $7,000 wage base for each employee
Kansas
KS
Tennessee
TN
subject to state unemployment insurance in the credit
Kentucky
KY
Texas
TX
CAUTION
reduction state. The credit reduction applies only
to FUTA taxable wages that were also subject to state
Louisiana
LA
Utah
UT
unemployment tax.
Maine
ME
Vermont
VT
In this case, you would write $63.00 in the Total Credit
Maryland
MD
Virginia
VA
Reduction box and then enter that amount on Form 940, line 11.
Massachusetts
MA
Washington
WA
Michigan
MI
West Virginia
WV
Example 2
Minnesota
MN
Wisconsin
WI
Mississippi
MS
Wyoming
WY
You paid $48,000 ($4,000 a month) in wages to Mary Smith and
Missouri
MO
Puerto Rico
PR
no payments were exempt from FUTA tax. Mary worked in State
U.S. Virgin Islands
VI
B (not subject to credit reduction) in January and then
transferred to State C (subject to credit reduction) on February
Step 2. You're subject to credit reduction if you paid FUTA
1. Because you paid wages in more than one state, you must
taxable wages that were also subject to state
complete Schedule A and file it with Form 940.
unemployment taxes in any state listed that has a credit
The total payments in State B that aren't exempt from FUTA tax
reduction rate greater than zero.
are $4,000. Since this payment to Mary doesn't exceed the
If you paid FUTA taxable wages that were also subject to state
$7,000 FUTA wage base, the total FUTA taxable wages paid in
unemployment taxes in any state that is subject to credit
State B are $4,000.
reduction, find the line for each state.
The total payments in State C that aren't exempt from FUTA tax
In the FUTA Taxable Wages box, enter the total FUTA taxable
are $44,000. However, $4,000 of FUTA taxable wages was paid
wages that you paid in that state. (The FUTA wage base for all
in State B with respect to Mary. Therefore, the total FUTA
states is $7,000.) However, don't include in the FUTA Taxable
taxable wages with respect to Mary in State C are $3,000
Wages box wages that were excluded from state unemployment
($7,000 (FUTA wage base) - $4,000 (total FUTA taxable wages
tax. For example, if you paid $5,000 in FUTA taxable wages in a
paid in State B)). Enter $3,000 in the FUTA Taxable Wages box,
credit reduction state but $1,000 of those wages were excluded
multiply it by the Reduction Rate, and then enter the result in the
from state unemployment tax, report $4,000 in the FUTA
Credit Reduction box.
Taxable Wages box for that state.
Attach Schedule A to Form 940 when you file your return.
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