As the accountant for Monroe Trucking Company, you are preparing the company’s annual return, Form 940 and Schedule A. Use the following information to complete Form 940 and Schedule A on pages 5-52 to 5-54.

The net FUTA tax liability for each quarter of 2018 was as follows: 1st, $97.00; 2nd, $87.00; 3rd, $69.70; and 4th, $59.50.
Since the net FUTA tax liability did not exceed $500, the company was not required to make its first deposit of FUTA taxes until January 31, 2019. Assume that the electronic payment was made on time.
a. One of the employees performs all of his duties in another state—Louisiana.
b. Total payments made to employees during calendar year 2018:
Texas........................... $53,450
Louisiana....................   22,150
Total...........................  $75,600
c. Employer contributions into employees’ 401(k) retirement plan: $1,250.
d. Payments made to employees in excess of $7,000: $22,150.
e. Form is to be signed by Vernon Scott, Vice President.
f. Phone number—(834) 555-5551.

Transcribed Image Text:

940 for 20--: Employer's Annual Federal Unemployment (FUTA) Tax Return Form Départment of the Treasury - Intemal Revenue Service OMB No. 1545-0028 Employer identification number Type of Return (EIN) (Cheok all that apply.) MONROE TRUCKING COMPANY Name (not your trade name) a. Amended b. Successor employer Trade name d any) c. No payments to employees in 20-- 423 BRISTOL PIKE Address d. Final: Business closed or stopped paying wages Suta or room number Number Stroet Instructions and prior-year forms are available at www.irs.gov/form940. LAREDO 78040-4523 City State ZIP coda Fordign country name Foraign province/bounty Foraign postal Doda Read the separate instructions before you complete this form. Please type or print within the boxes. Part 1: Tell us about your return. If any line does NOT apply, leave it blank. See instructions before completing Part 1. 1a If you had to pay state unemployment tax in one state only, enter the state abbreviation. 1b If you had to pay state unemployment tax in more than one state, you are a multi-state employer. 1a Check here. 1b Complete Schedule A (Form 940). 2 If you paid wages in a state that is subject to CREDIT REDUCTION. Part 2: Determine your FUTA tax before adjustments. If any line does NOT apply, leave it blank. Check here. Complete Schedule A (Form 940). Total payments to all employees 3 4 Payments exempt from FUTA tax Check all that apply. 4a O Fringe benefits Retirement/Pension Other 4b Group-term life insurance 4d Dependent care Total of payments made to each employee in excess of $7,000 Subtotal (line 4 + line 5 = line 6) Total taxable FUTA wages (line 3- line 6 = line 7) (see instructions) FUTA tax before adjustments (line 7 x .006 = line 8) Part 3: Determine your adjustments. If any line does NOT apply, leave it blank. If ALL of the taxable FUTA wages you paid were excluded from state unemployment tax, multiply line 7 by .054 (line 7 x .054 = line 9). Go to line 12 If SOME of the taxable FUTA wages you paid were excluded from state unemployment tax, OR you paid ANY state unemployment tax late (after the due date for filing Form 940), 10 10 complete the worksheet in the instructions. Enter the amount from line 7 of the worksheet. 11 If credit reduction applies, enter the total from Schedule A (Form 940) Part 4: Determine your FUTA tax and balance due or overpayment. If any line does NOT apply, leave it blank. Total FUTA tax after adjustments (lines 8 +9+ 10 +11 = line 12) . 12 12 13 FUTA tax deposited for the year, including any overpayment applied from a prior year 13 14 Balance due (If line 12 is more than line 13, enter the excess on line 14.) • If line 14 is more than $500, you must deposit your tax. • If line 14 is $500 or less, you may pay with this retum. (see instructions) 14 15 Overpayment (If line 13 is more than line 12, enter the excess on line 15 and check a box below.) You MUST complete both pages of this form and SIGN it. 15 U Apply to next retum. |Send a refund. Check one: Next Form 940 (2016) For Privacy Act and Paperwork Reduction Act Notice, see the back of Form 940-v, Payment Voucher. Cat. No. 112340 Name (not your trade name) Employer Identification number (EIN) MONROE TRUCKING COMPANY 00-0003793 Part 5: Report your FUTA tax liability by quarter only if line 12 is more than $500. If not, go to Part 6. 16 Report the amount of your FUTA tax liability for each quarter; do NOT enter the amount you deposited. If you had no liability for a quarter, leave the line blank. 16a 1st quarter (January 1- March 31). 16a 16b 2nd quarter (April 1- June 30) 16b 16c 3rd quarter (July 1- September 30) 16c 16d 4th quarter (October 1- December 31) 16d 17 Total tax liability for the year (lines 16a + 16b + 16c + 16d = line 17) 17 Total must equal line 12. Part 6: May we speak with your third-party designee? Do you want to allow an employee, a paid tax preparer, or another person to discuss this return with the IRS? Se the instructions for details. OYes. Designee's name and phone number Select a 5-digit Personal Identification Number (PIN) to use when talking to IRS No. Part 7: Sign here. You MUST complete both pages of this form and SIGN it. Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete, and that no part of any payment made to a state unemployment fund claimed as a credit was, or is to be, deducted from the payments made to employees. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Print your name here Sign your name here Print your title here Best daytime phone Date Paid Preparer Use Only Check if you are self-employed Preparer's name PTIN Preparer's signature Date Firm's name yours if self-employed) EIN Address Phone City State ZIP code Page Form 940 (2016)