Note: Since the 2019 Form 940 and Schedule A were not available at print date, the 2018 version is used. The net FUTA rate of 0.6% is used in the text. 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. The net FUTA tax liability for each quarter of 20-- was as follows: 1st, $216.70; 2nd, $109.90; 3rd, $103.10; and 4th, $53.36 plus the credit reduction. 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 of the next year. Assume that the electronic payment was made on time. a. One of the employees performs all of his duties in another state-Arizona. b. Total payments made to employees during calendar year 20-- California $101,890 Arizona 18,810 Total $120,700 C. Employer contributions in California into employees' 401(k) retirement plan: $3,580. d. Payments made to employees in excess of $7,000: $36,610 ($11,810 from Arizona and $24,800 from California). e. Form is to be signed by Mickey Vixon, Vice President, and dated 1/31/--- f. Phone number (219) 555-8310. If an input box does not require an entry, leave it blank. In each step of the computation, round amount to nearest cent then use that value in subsequent computations. Round final answer to the nearest cent. 6 Subtotal (line 4 + line 5 = line 6) 6 40,190.00 7 Total taxable FUTA wages (line 3 - line 6 = line 7). See instructions 7 80,510.00 8 FUTA tax before adjustments (line 7 x 0.006 = line 8).......... 8 483.06 9 Part 3: Determine your adjustments. If any line does NOT apply, leave it blank. 9 If ALL of the taxable FUTA wages you paid were excluded from state unemployment tax, multiply line 7 by 0.054 (line 7 x 0.054 = line 9). Go to line 12. 10 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), complete the worksheet in the instructions. Enter the amount from line 7 of the worksheet .... 10 11 If credit reduction applies, enter the total from Schedule A (Form 940). 11 o Part 4: Determine your FUTA tax and balance due or overpayment. If any line does NOT apply, leave it blank. 12 Total FUTA tax after adjustments (lines 8 + 9 + 10 + 11 = line 12). 12 483.06 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 return. See instructions 14 15 Overpayment. 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 the Payment Voucher. Cat. No. 112340 Form 940 (2018) Name (not your trade name) Employer identification number (EIN) RUNSON MOVING 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 + 160 + 16d = line 17) 17 X 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? See the instructions for details. No X Designee's name and phone number Select a 5-digit Personal Identification Number (PIN) to use when talking to IRS Part 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. 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. 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. FUTA Reduction FUTA Reduction Postal Abbreviation Credit Reduction Postal Abbreviation Credit Reduction Taxable Wages Rate Taxable Wages Rate x 0.000 NC X 0.000 O AL X 0.000 OND X 0.000 DAR X 0.000 NE x 0.000 X AZ X 0.000 0 X 0.000 X CA X 0.000 0 O NJ X 0.000 X 0.000 NM x 0.000 x 0.000 NV X 0.000 DC X 0.000 ONY X 0.000 DE X 0.000 DOH X 0.000 D FL X 0.000 OOK X 0.000 O GA x 0.000 OR x 0.000 Note: Since the 2019 Form 940 and Schedule A were not available at print date, the 2018 version is used. The net FUTA rate of 0.6% is used in the text. 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. The net FUTA tax liability for each quarter of 20-- was as follows: 1st, $216.70; 2nd, $109.90; 3rd, $103.10; and 4th, $53.36 plus the credit reduction. 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 of the next year. Assume that the electronic payment was made on time. a. One of the employees performs all of his duties in another state-Arizona. b. Total payments made to employees during calendar year 20-- California $101,890 Arizona 18,810 Total $120,700 C. Employer contributions in California into employees' 401(k) retirement plan: $3,580. d. Payments made to employees in excess of $7,000: $36,610 ($11,810 from Arizona and $24,800 from California). e. Form is to be signed by Mickey Vixon, Vice President, and dated 1/31/--- f. Phone number (219) 555-8310. If an input box does not require an entry, leave it blank. In each step of the computation, round amount to nearest cent then use that value in subsequent computations. Round final answer to the nearest cent. 6 Subtotal (line 4 + line 5 = line 6) 6 40,190.00 7 Total taxable FUTA wages (line 3 - line 6 = line 7). See instructions 7 80,510.00 8 FUTA tax before adjustments (line 7 x 0.006 = line 8).......... 8 483.06 9 Part 3: Determine your adjustments. If any line does NOT apply, leave it blank. 9 If ALL of the taxable FUTA wages you paid were excluded from state unemployment tax, multiply line 7 by 0.054 (line 7 x 0.054 = line 9). Go to line 12. 10 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), complete the worksheet in the instructions. Enter the amount from line 7 of the worksheet .... 10 11 If credit reduction applies, enter the total from Schedule A (Form 940). 11 o Part 4: Determine your FUTA tax and balance due or overpayment. If any line does NOT apply, leave it blank. 12 Total FUTA tax after adjustments (lines 8 + 9 + 10 + 11 = line 12). 12 483.06 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 return. See instructions 14 15 Overpayment. 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 the Payment Voucher. Cat. No. 112340 Form 940 (2018) Name (not your trade name) Employer identification number (EIN) RUNSON MOVING 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 + 160 + 16d = line 17) 17 X 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? See the instructions for details. No X Designee's name and phone number Select a 5-digit Personal Identification Number (PIN) to use when talking to IRS Part 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. 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. 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. FUTA Reduction FUTA Reduction Postal Abbreviation Credit Reduction Postal Abbreviation Credit Reduction Taxable Wages Rate Taxable Wages Rate x 0.000 NC X 0.000 O AL X 0.000 OND X 0.000 DAR X 0.000 NE x 0.000 X AZ X 0.000 0 X 0.000 X CA X 0.000 0 O NJ X 0.000 X 0.000 NM x 0.000 x 0.000 NV X 0.000 DC X 0.000 ONY X 0.000 DE X 0.000 DOH X 0.000 D FL X 0.000 OOK X 0.000 O GA x 0.000 OR x 0.000