1. As the accountant for Runson Moving 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.
2. The net FUTA tax liability for each quarter of 2017 was as follows: 1st, $216.00; 2nd, $108.80; 3rd, $96.20; and 4th, $59.60 plus the credit reduction.
3. Since the net FUTA tax liability did not exceed $500 until the 4th quarter, the company was required to make its first deposit of FUTA taxes on January 31, 2018. Assume that the electronic payment was made on time.
4. a.One of the employees performs all of his duties in another state-Arizona.
5. b.Total payments made to employees during calendar year 2017:
6. California$101,690Arizona18,920Total$120,610c.Employer contributions in California into employees' 401(k) retirement plan: $3,570.
7. d.Payments made to employees in excess of $7,000: $36,940 ($11,920 from Arizona and $25,020 from California).
8. e.Form is to be signed by Mickey Vixon, Vice President.
9. f.Phone number - (219) 555-8310.
10. If an input box does not require an entry, leave it blank. When required, round amounts to the nearest cent.
11. ^Form940 for 20--:Employer's Annual Federal Unemployment (FUTA) Tax Return^{Department of the Treasury Internal Revenue ServiceOMB No. 1545-0028}Employer identification number (EIN)000003793Name (not your trade name)RUNSON MOVING COMPANYTrade name (if any)Address423 BRISTOL PIKE^{NumberStreetSuite or room number}SACRAMENTOCA94203-4523^{CityStateZIP codeForeign country nameForeign province/countyForeign postal code}Type of Return
12. (Select one.)Amended
13. Successor employer
14. No payments to employees in 20--
15. Final: Business closed or stopped paying wages
16. None of these
18. Instructions and prior-year forms are available at www.irs.gov/form940.Read the separate instructions before you fill out 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.1aIf you had to pay state unemployment tax in one state only, enter the state abbreviation . . . . . . . . . .1a1bIf you had to pay state unemployment tax in more than one state, you are a multi-state employer . . . 1bCheck here.
19. Complete Schedule A (Form 940).
20. 2If you paid wages in a state that is subject to CREDIT REDUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Check here.
21. Complete Schedule A (Form 940).
22. Part 2:Determine your FUTA tax before adjustments. If any line does NOT apply, leave it blank.3Total payments to all employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34Payments exempt from FUTA tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4Select: Fringe benefits
23. Group-term life insurance
24. Retirement/Pension
25. Dependent care
26. Other
27. Blank (no payments exempt from FUTA)
28. 5Total of payments made to each employee in excess of $7,000 . . . . . . . . . . . .56Subtotal (line 4 + line 5 = line 6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67Total taxable FUTA wages (line 3 line 6 = line 7) (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . 78FUTA tax before adjustments (line 7 x .006 = line 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Part 3:Determine your adjustments. If any line does NOT apply, leave it blank.9If 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 910If 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), complete the worksheet in the instructions. Enter the amount from line 7 of the worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1011If credit reduction applies, enter the total from Schedule A (Form 940) . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Part 4:Determine your FUTA tax and balance due or overpayment. If any line does NOT apply, leave it blank.12Total FUTA tax after adjustments (lines 8 + 9 + 10 + 11 = line 12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1213FUTA tax deposited for the year, including any overpayment applied from a prior year . . . . . . . . . . .1314Balance due (If line 12 is more than line 13, enter the excess on line 14.)
29. If line 14 is more than $500, you must deposit your tax.
30. If line 14 is $500 or less, you may pay with this return. (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . .1415Overpayment (If line 13 is more than line 12, enter the excess on line 15 and check a box below.) . . . . . . . .15 You MUST complete both pages of this form and SIGN it.Check one: Apply to next return. Send a refund.Next For Privacy Act and Paperwork Reduction Act Notice, see the back of Form 940-V, Payment Voucher.Cat. No. 11234OForm 940 (2015)
32. Name (not your trade name)Employer identification number (EIN)RUNSON MOVING COMPANY00-0003793Part 5:Report your FUTA tax liability by quarter only if line 12 is more than $500. If not, go to Part 6.16Report 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.16a1st quarter (January 1 March 31) . . . . . . . . . . . . . . . . . . . . . . . . . 16a16b2nd quarter (April 1 June 30) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16b16c3rd quarter (July 1 September 30) . . . . . . . . . . . . . . . . . . . . . . . . .16c16d4th quarter (October 1 December 31). . . . . . . . . . . . . . . . . . . . . . . 16d17Total tax liability for the year (lines 16a + 16b + 16c + 16d = line 17)17Total 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? See the instructions for details.Yes
33. No
34. Designee's name and phone numberSelect a 5-digit Personal Identification Number (PIN) to use when talking to IRSPart 7:Sign here. You MUST fill out 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.Sign your
35. name herePrint your
36. name hereRunson Moving
37. Mickey Vixon
38. Print your
39. title herePresident
40. Vice President
41. Chief Coordinator
42. Date1/31/18Best daytime phone219-555-8310Paid Preparer Use OnlyCheck if you are self-employed . . . . Preparer's namePTINPreparer's signatureDate //Firm's name (or yours if self-employed)EINAddressPhoneCityStateZIP codePage 2Form 940 (2015)
43. Source: Internal Revenue Service
45. Schedule A (Form 940) for 20--:Multi-State Employer and Credit Reduction Information
46. ^{Department of the Treasury Internal Revenue Service}_{OMB No. 1545-0028}Employer identification number (EIN)000003793Name (not your trade name)Runson Moving CompanyPlace 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. Don't include in the FUTA Taxable Wages box wages that were excluded from state unemployment tax (see the instructions for Step 2). If any states don't apply to you, leave them blank.Postal AbbreviationFUTA
47. Taxable WagesReduction RateCredit ReductionPostal AbbreviationFUTA
48. Taxable WagesReduction RateCredit Reduction AK.000 NC.000 AL.000 ND.000 AR.000 NE.000 AZ.000 NH.000 CA.015 NJ.000 CO.000 NM.000 CT.021 NV.000 DC.000 NY.000 DE.000 OH.015 FL.000 OK.000 GA.000 OR.000 HI.000 PA.000 IA.000 RI.000 ID.000 SC.000 IL.000 SD.000 IN.000 TN.000 KS.000 TX.000 KY.000 UT.000 LA.000 VA.000 MA.000 VT.000 MD.000 WA.000 ME.000 WI.000 MI.000 WV.000 MN.000 WY.000 MO.000 PR.000 MS.000 VI.015 MT.000Total 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. 16997CSchedule A (Form 940) 2015