2014 Form 940 (Schedule A) 860412 F940sa
User Manual: 860412
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Schedule A (Form 940) for 2014:
Multi-State Employer and Credit Reduction Information
Department of the Treasury — Internal Revenue Service
860312
OMB No. 1545-0028
Employer identification number (EIN) —
Name (not your trade name)
See the
instructions on
page 2. File this
schedule with
Form 940.
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. Do not include in the FUTA Taxable Wages box wages that were excluded from state
unemployment tax (see the instructions for Step 2). If any states do not apply to you, leave them blank.
Postal
Abbreviation
FUTA
Taxable Wages
Reduction
Rate
Credit Reduction
AK . .
AL . .
AR . .
AZ . .
CA . .
CO . .
CT . .
DC . .
DE . .
FL . .
GA . .
HI . .
IA . .
ID . .
IL . .
IN . .
KS . .
KY . .
LA . .
MA . .
MD . .
ME . .
MI . .
MN . .
MO . .
MS . .
MT . .
Postal
Abbreviation
FUTA
Taxable Wages
Reduction
Rate
Credit Reduction
NC . .
ND . .
NE . .
NH . .
NJ . .
NM . .
NV . .
NY . .
OH . .
OK . .
OR . .
PA . .
RI . .
SC . .
SD . .
TN . .
TX . .
UT . .
VA . .
VT . .
WA . .
WI . .
WV . .
WY . .
PR . .
VI . .
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) 2014
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Instructions for Schedule A (Form 940) for 2014: 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
District of Columbia, Puerto Rico, and the U.S. Virgin
Islands) in which you had to pay state unemployment taxes
this year, even if the state's credit reduction rate is zero.
Note. Make sure that you have applied for a state reporting
number for your business. If you do not have an unemployment
account in a state in which you paid wages, contact the state
unemployment agency to receive one. For a list of state
unemployment agencies, visit the U.S. Department of Labor's
website at www.workforcesecurity.doleta.gov/unemploy/
agencies.asp.
The table below provides the two-letter postal abbreviations
used on Schedule A.
State
Postal
Abbreviation
Alabama AL
Alaska AK
Arizona AZ
Arkansas AR
California CA
Colorado CO
Connecticut CT
Delaware DE
District of Columbia DC
Florida FL
Georgia GA
Hawaii HI
Idaho ID
Illinois IL
Indiana IN
Iowa IA
Kansas KS
Kentucky KY
Louisiana LA
Maine ME
Maryland MD
Massachusetts MA
Michigan MI
Minnesota MN
Mississippi MS
Missouri MO
State
Postal
Abbreviation
Montana MT
Nebraska NE
Nevada NV
New Hampshire NH
New Jersey NJ
New Mexico NM
New York NY
North Carolina NC
North Dakota ND
Ohio OH
Oklahoma OK
Oregon OR
Pennsylvania PA
Rhode Island RI
South Carolina SC
South Dakota SD
Tennessee TN
Texas TX
Utah UT
Vermont VT
Virginia VA
Washington WA
West Virginia WV
Wisconsin WI
Wyoming WY
Puerto Rico PR
U.S. Virgin Islands VI
Step 2. You are subject to credit reduction if you paid FUTA
taxable wages that were also subject to state
unemployment taxes in any state listed that has a credit
reduction rate greater than zero.
If you paid FUTA taxable wages that were also subject to state
unemployment taxes in any state that is subject to credit
reduction, find the line for each state.
In the FUTA Taxable Wages box, enter the total FUTA taxable
wages that you paid in that state. (The FUTA wage base for all
states is $7,000.) However, do not include in the FUTA Taxable
Wages box wages that were excluded from state unemployment
tax. For example, if you paid $5,000 in FUTA taxable wages in a
credit reduction state but $1,000 of those wages were excluded
from state unemployment tax, report $4,000 in the FUTA
Taxable Wages box for that state.
Note. Do not enter your state unemployment wages in the FUTA
Taxable Wages box.
Then multiply the total FUTA taxable wages by the reduction
rate.
Enter your total in the Credit Reduction box at the end of the
line.
Step 3. Total credit reduction
To calculate the total credit reduction, add up all of the Credit
Reduction boxes and enter the amount in the Total Credit
Reduction box.
Then enter the total credit reduction on Form 940, line 11.
Example 1
You paid $20,000 in wages to each of three employees in State A. State
A is subject to credit reduction at a rate of .003 (.3%). Because you paid
wages in a state that is subject to credit reduction, you must complete
Schedule A and file it with Form 940.
Total payments to all employees in State A . . . . . . $60,000
Payments exempt from FUTA tax
(see the Instructions for Form 940) . . . . . . . . . . $0
Total payments made to each employee in
excess of $7,000 (3 x ($20,000 - $7,000)) . . . . . . . $39,000
Total FUTA taxable wages you paid in State A entered in
the FUTA Taxable Wages box ($60,000 - $0 - $39,000) . . . $21,000
Credit reduction rate for State A . . . . . . . . . . .003
Total credit reduction for State A ($21,000 x .003) . . . . . $63
Caution. Do not include in the FUTA Taxable Wages box wages in
excess of the $7,000 wage base for each employee subject to state
unemployment insurance in the credit reduction state. The credit
reduction applies only to FUTA taxable wages that were also subject to
state unemployment tax.
In this case, you would write $63.00 in the Total Credit Reduction box
and then enter that amount on Form 940, line 11.
Example 2
You paid $48,000 ($4,000 a month) in wages to Employee A and no
payments were exempt from FUTA tax. Employee A worked in State B
(not subject to credit reduction) in January and then transferred to State
C (subject to credit reduction) on February 1. Because you paid wages
in more than one state, you must complete Schedule A and file it with
Form 940.
The total payments in State B that are not exempt from FUTA tax are
$4,000. Since this payment to Employee A does not exceed the $7,000
FUTA wage base, the total FUTA taxable wages paid in State B are
$4,000.
The total payments in State C that are not exempt from FUTA tax are
$44,000. However, $4,000 of FUTA taxable wages was paid in State B
with respect to Employee A. Therefore, the total FUTA taxable wages
with respect to Employee A in State C are $3,000 ($7,000 (FUTA wage
base) - $4,000 (total FUTA taxable wages paid in State B)). Enter $3,000
in the FUTA Taxable Wages box, multiply it by the Reduction Rate, and
then enter the result in the Credit Reduction box.
Attach Schedule A to Form 940 when you file your return.
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