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12. Total FUTA tax after adjustments

Example for using the worksheet:

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

result on line 12.

You had 3 employees, 2 of these employees were corporate officers whose

wages were not subject to state unemployment tax in your state. The other

employee’s wages were subject to state unemployment tax. You paid some

line 8

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

line 9

+line 10

Here are the records:

line 12

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

$21,000.00

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

$ 7,000.00

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

Experience rate for 2007 . . . . . . . . . . . . . . . . . . . . . . .

.041(4.1%)

zero because they would not apply.

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

$100.00

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

$78.00

CAUTION

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

$109.00

13. FUTA tax deposited for the year

1. Maximum allowable credit

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

year, including any overpayment that you applied from a prior

$21,000.00 (line 7 of Form 940)

year.

x .054 (maximum credit rate)

$1,134.00

14. Balance due

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

$91.00

– line 13

.054 (maximum credit rate)

$7,000

line 14

– .041 (your experience rate)

x .013

If line 14 is:

.013 (your computation rate)

$91.00

•

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

4. Subtotal (line 2 + line 3)

$191.00

You Deposit Your FUTA Tax? on page 3.

•

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

$100

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

+ 91

$191

your return.

•

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

5. Credit for paying state unemployment taxes late

If you do not deposit as required and pay your tax with

5a.

Remaining allowable credit:

5a.

$943.00

Form 940, you may be subject to a penalty.

$1,134.00

CAUTION

– 191.00

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

$943.00

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

5b.

State unemployment tax paid late:

5b.

$78.00

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

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

5d.

Allowable credit (for paying late)

5d.

$70.20

the IRS website at and click on the electronic irs

link.

$78.00

x .90

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

$70.20

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

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

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

$261.20

$191.00

15. Overpayment

+ 70.20

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

$261.20

line 15.

7. Your adjustment (line 1 - line 6)

$872.80

line 13

$1,134.00

– line 12

– 261.20

line 15

$872.80 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:

•

11. If credit reduction applies . . .

Apply the refund to your next return, or

•

Send you a refund.

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

Labor has announced that there are no credit reduction states

Also, check the appropriate box in line 15 to tell us which

for tax year 2007.

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

automatically refund your overpayment. Also, we may apply

Part 4: Determine Your FUTA Tax

your overpayment to any past due tax account you have.

for 2007

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 - 2007 Page 9

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