Instructions For Form 940 - 2016 (Page 8 of 12) in pdf

6. Subtotal

pay FUTA tax on those wages at the full FUTA rate of 6.0%

(0.060). When you figured the FUTA tax before adjustments on

To figure your subtotal, add the amounts on lines 4 and 5 and

line 8, it was based on the maximum allowable credit (5.4%) for

enter the result on line 6.

state unemployment tax payments. Because you didn't pay state

unemployment tax, you don't have a credit and must figure this

line 4

adjustment.

+ line 5

If line 9 applies to you, lines 10 and 11 don't apply to you.

line 6

Therefore, leave lines 10 and 11 blank. Don't fill out the

worksheet in these instructions. Complete Schedule A (Form

940) only if you’re a multi-state employer.

7. Total Taxable FUTA Wages

10. If SOME of the Taxable FUTA Wages You

To figure your total taxable FUTA wages, subtract line 6 from

Paid Were Excluded From State Unemployment

line 3 and enter the result on line 7.

Tax, or You Paid any State Unemployment Tax

line 3

Late...

− line 6

You must fill out the worksheet on the next page if:

line 7

Some of the taxable FUTA wages you paid were excluded

from state unemployment, or

Any of your payments of state unemployment tax were late.

8. FUTA Tax Before Adjustments

The worksheet takes you step by step through the process of

figuring your credit. At the end of the worksheet you'll find an

To figure your total FUTA tax before adjustments, multiply line 7

example of how to use it. Don't complete the worksheet if line 9

by 0.006 and then enter the result on line 8.

applied to you (see the instructions for line 9 above).

Before you can properly fill out the worksheet, you will

line 7

need to gather the following information.

x 0.006

Taxable FUTA wages (Form 940, line 7).

line 8

Taxable state unemployment wages (state and federal wage

bases may differ).

The experience rates assigned to you by the states where you

Part 3: Determine Your Adjustments

paid wages.

The amount of state unemployment taxes you paid on time.

If any line in Part 3 doesn't apply, leave it blank.

(On time means that you paid the state unemployment taxes by

the due date for filing Form 940.)

9. If ALL of the Taxable FUTA Wages You Paid

The amount of state unemployment taxes you paid late. (Late

Were Excluded from State Unemployment

means after the due date for filing Form 940.)

Tax. . .

Don't include any penalties, interest, or unemployment

taxes deducted from your employees' pay in the amount

Line 9 doesn't apply to FUTA wages on which you paid

of state unemployment taxes. Also, don't include as

no state unemployment tax only because the state

CAUTION

state unemployment taxes any special administrative taxes or

assigned you a tax rate of zero percent.

CAUTION

voluntary contributions you paid to get a lower assigned

If all of the taxable FUTA wages you paid were excluded from

experience rate or any surcharges, excise taxes, or employment

state unemployment tax, multiply line 7 by 0.054 and enter the

and training taxes. (These items are generally listed as separate

result on line 9.

items on the state's quarterly wage report.)

line 7

For line 3 of the worksheet:

x 0.054

If any of the experience rates assigned to you were less than

5.4% for any part of the calendar year, you must list each

line 9

assigned experience rate separately on the worksheet.

If you were assigned six or more experience rates that were

If you weren't required to pay state unemployment tax

less than 5.4% for any part of the calendar year, you must use

because all of the wages you paid were excluded from state

another sheet to figure the additional credits and then include

unemployment tax, you must pay FUTA tax at the 6.0% (0.060)

those additional credits in your line 3 total.

rate. For example, if your state unemployment tax law excludes

After you complete the worksheet, enter the amount from

wages paid to corporate officers or employees in specific

line 7 of the worksheet on Form 940, line 10. Don't attach the

occupations, and the only wages you paid were to corporate

worksheet to your Form 940. Keep it with your records.

officers or employees in those specific occupations, you must

Instructions for Form 940 (2016)

Instructions For Form 940 - 2016 Page 8

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