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12. Total FUTA tax after adjustments

Example for using the worksheet:

Add the amounts shown on lines 8, 9, 10, and 11, and enter the

result on line 12.

Employee A and Employee B are corporate officers whose wages are

excluded from state unemployment tax in your state. Employee C’s wages

are not excluded from state unemployment tax. During 2008, you paid

line 8

$44,000 to Employee A, $22,000 to Employee B, and $16,000 to Employee

line 9

C. Your state’s wage base is $8,000. You paid some state unemployment

line 10

tax on time, some late, and some remains unpaid.

+line 11

line 12

Here are the records:

If line 9 is greater than zero, lines 10 and 11 must be

Total taxable FUTA wages (line 7 of Form 940) . . . . . . . . .

$21,000.00

Taxable state unemployment wages . . . . . . . . . . . . . . . .

$ 8,000.00

zero because they would not apply.

Experience rate for 2008 . . . . . . . . . . . . . . . . . . . . . . .

.041(4.1%)

CAUTION

State unemployment tax paid on time . . . . . . . . . . . . . . .

$100.00

State unemployment tax paid late . . . . . . . . . . . . . . . . . .

$78.00

13. FUTA tax deposited for the year

State unemployment tax not paid . . . . . . . . . . . . . . . . . .

$150.00

Enter the amount of total FUTA tax that you deposited for the

year, including any overpayment that you applied from a prior

1. Maximum allowable credit

year.

$21,000.00 (line 7 of Form 940)

14. Balance due

x .054 (maximum credit rate)

$1,134.00

If line 13 is less than line 12, enter the difference on line 14.

line 12

2. Credit for timely state unemployment tax payments

$100.00

– line 13

3. Additional credit

$104.00

line 14

.054 (maximum credit rate)

$8,000

If line 14 is:

– .041 (your experience rate)

x .013

•

More than $500, you must deposit your tax. See When Must

.013 (your computation rate)

$104.00

You Deposit Your FUTA Tax? on page 3.

•

4. Subtotal (line 2 + line 3)

$204.00

$500 or less, you can deposit your tax, pay your tax with a

major credit card, or pay your tax by check or money order with

$100

your return.

+ 104

•

Less than $1, you do not have to pay it.

$204

5. Credit for paying state unemployment taxes late

If you do not deposit as required and pay any balance

due with Form 940, you may be subject to a penalty.

5a.

Remaining allowable credit: (line 1 - line 4)

5a.

$930.00

CAUTION

$1,134.00

– 204.00

How to deposit or pay the balance due. You may pay the

$930.00

amount shown on line 14 using EFTPS, a credit card, or

electronic funds withdrawal (EFW). Do not use a credit card or

5b.

State unemployment tax paid late:

5b.

$78.00

EFW to pay taxes that were required to be deposited. For more

5c.

Which is smaller? Line 5a or line 5b?

5c.

$78.00

information on paying your taxes with a credit card or EFW, visit

the IRS website at and click on the electronic irs

5d.

Allowable credit (for paying late)

5d.

$70.20

link.

$78.00

If you pay by EFTPS, credit card, or EFW, file your return

x .90

using the “Without a payment” address on page 2 under Where

$70.20

Do You File? and do not file Form 940-V.

6. Your FUTA credit (line 4 + line 5d)

$274.20

15. Overpayment

$204.00

+ 70.20

If line 13 is more than line 12, enter the difference on

$274.20

line 15.

7. Your adjustment (line 1 - line 6)

$859.80

line 13

– line 12

$1,134.00

line 15

– 274.20

$859.80 You would enter this amount on line 10 of Form

940.

If you deposited more than the FUTA tax due for the year,

you may choose to have us either:

•

Apply the refund to your next return, or

11. If credit reduction applies . . .

•

Send you a refund.

Skip line 11 and go to line 12 because the U.S. Department of

Check the appropriate box in line 15 to tell us which option

Labor has announced that there are no credit reduction states

you select. If you do not check either box, we will automatically

for tax year 2008.

refund your overpayment. Also, we may apply your

Part 4: Determine Your FUTA Tax

overpayment to any past due tax account you have.

for 2008

If line 15 is less than $1, we will send you a refund or apply it

to your next return only if you ask for it in writing.

If any line in Part 4 does not apply, leave it blank.

-9-

Instructions For Form 940 - Employer'S Annual Federal Unemployment (Futa) Tax Return - 2008 Page 9

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