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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 2010, 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:

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

$21,000.00

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

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

$ 8,000.00

zero because they would not apply.

Experience rate for 2010 . . . . . . . . . . . . . . . . . . . . . . .

.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

1. Maximum allowable credit

year, including any overpayment that you applied from a prior

year.

$21,000.00 (line 7 of Form 940)

x .054 (maximum credit rate)

14. Balance due

$1,134.00

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

2. Credit for timely state unemployment tax payments

$100.00

line 12

3. Additional credit

– line 13

$104.00

line 14

.054 (maximum credit rate)

$8,000

– .041 (your experience rate)

x .013

If line 14 is:

.013 (your computation rate)

$104.00

•

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

4. Subtotal (line 2 + line 3)

$204.00

You Deposit Your FUTA Tax? on page 3.

•

$100

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

+ 104

major credit card, debit card, or pay your tax by check or money

$204

order with your return.

•

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

5. Credit for paying state unemployment taxes late

5a.

Remaining allowable credit: (line 1 - line 4)

5a.

$930.00

If you do not deposit as required and pay any balance

$1,134.00

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

– 204.00

CAUTION

$930.00

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

5b.

State unemployment tax paid late:

5b.

$78.00

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

5c.

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

5c.

$78.00

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

debit card or EFW to pay taxes that were required to be

5d.

Allowable credit (for paying late)

5d.

$70.20

deposited. For more information on paying your taxes with a

$78.00

credit or debit card or EFW, go to

x .90

$70.20

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

return using the Without a payment address on page 2 under

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

$274.20

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

$204.00

+ 70.20

15. Overpayment

$274.20

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

7. Your adjustment (line 1 - line 6)

$859.80

line 15.

$1,134.00

line 13

– 274.20

– line 12

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

line 15

940.

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

11. If credit reduction applies . . .

you may choose to have us either:

If you paid wages in the states of Indiana, Michigan, or South

•

Apply the refund to your next return, or

Carolina, enter the amount from line 3 of Schedule A (Form

•

Send you a refund.

940) on line 11 of Form 940. However, if you entered an

amount on line 9 because all the FUTA wages you paid were

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

excluded from state unemployment tax, skip line 11 and go to

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

line 12.

refund your overpayment. Also, we may apply your

overpayment to any past due tax account you have.

Part 4: Determine Your FUTA Tax

for 2010

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 - 2010 Page 9

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