Please help with this. none of it is making sense to me

Lolita's Lovely Locks

ACCT 1060_Payroll Accounting

Assignment 9_Payroll Project Narrative

Introduction

In this assignment you are going to prepare payroll accounting entries, complete payroll records, and prepare payroll tax returns for a Company that started operations on October 1 of the current year.You will prepare various quarterly and year-end payroll reports.This assignment has a variety of electronic files for you to download, complete and upload to Blackboard.At the end of this document there is a summary of the electronic files and what you will find in them.

The Company

On October 1, Lolita M. Lovely established a Hair Salon which she named Lolita's Lovely Locks.Her business is organized as a corporation.The business provides hair cuts, hair styling, and hair grooming for both men and woman.

Company8500 Dodge St.

Address:Omaha, NE68105

Including herself, Lolita has three paid employees.Lolita pays herself a salary.Her two employees are paid hourly.The employee earnings records have the payment details including pay rates, withholding allowances, pay flex deductions, identification information, etc.

Tax InformationFederal Taxid::47-3882497

All taxes and withholding amounts are based on earnings after deduction of the Pay flex amount.

OASDI (Social Security) tax rate 6.2% (no employee will go over the maximum in this assignment).

Medicare (HI or Health Insurance) tax rate 1.45%

Nebraska Unemployment tax rate 2.4% on the first $9,000 of earnings.

Federal Unemployment tax rate 0.6% (= .006) on the first $7,000 of earnings

Transactions and Requirements

1. Complete the Earnings Records and Payroll RegistersCalculate the earnings, deductions and net pay for each employee.Use the income tax withholding tables included with your text.Use the wage bracket (table method) to compute income tax withholding.Calculate and enter the deduction for State withholding assuming that the State income tax withholding is equal to 15% of the Federal income tax withholding.The Social Security (OASDI) tax rate is 6.2% of taxable wages (none of the employees will have earnings in excess of the social security base.The Medicare (HI) tax rate is 1.45%.

October Salary & Wage Information

Employees Paid HourlyRegularOvertime

HoursHours

Linda A. Osborne16812

Kathryn B. Jones1682

Salaries Employee:Lolita M. Lovely$3,500 per Month

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November Salary & Wage Information

Employees Paid HourlyRegularOvertime

HoursHours

Linda A. Osborne17622

Kathryn B. Jones1680

Salaries Employee

Lolita M. Lovely$3,500 per Month

December Salary & Wage Information

Employees Paid HourlyRegularOvertime

HoursHours

Linda A. Osborne16812

Kathryn B. Jones1304

Salaries Employee

Lolita M. Lovely$3,500 per Month

1. Prepare and post Journal entries.For the transactions listed below, prepare appropriate journal entries and post the entries to the appropriate general ledger accounts.

October

Oct31Journalize and post the entry to record the October payroll.Your entry should include: Salaries & Wages expense, all of the related deductions, and a credit to cash for the net pay.

Oct31Journalize and post the entry to record the employer's payroll tax expense for the month of October.Your entry should include payroll tax expense and separately identified amounts for each payroll tax liability item.

November

Nov10Journalize and post the entry to record the payment (deposit) of the Federal income tax, Social Security tax, and Medicare tax. Your entry should include both the employee and employer's share of Social Security taxes and Medicare taxes.

Nov30Journalize and post the entry to record the November payroll.Your entry should include: Salaries & Wages expense, all of the related deductions, and a credit to cash for the net pay.

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Nov30Journalize and post the entry to record the employer's payroll tax expense for the month of November. Your entry should include payroll tax expense and separately identified amounts for each payroll tax liability item.

December

Dec10Journalize and post the entry to record the payment (deposit) of the Federal income tax, Social Security tax, and Medicare tax.Your entry should include both the employee and employer's share of Social Security taxes and Medicare taxes.

Dec30Journalize and post the entry to record the December payroll.Your entry should include: Salaries & Wages expense, all of the related deductions, and a credit to cash for the net pay.

Dec30Journalize and post the entry to record the employer's payroll tax expense for the month of December. Your entry should include payroll tax expense and separately identified amounts for each payroll tax liability item.

3.Prepare Payroll Tax ReportsPrepare the quarterly and annual payroll tax reports indicated below.The source of the information for these reports is the employee earnings records, the journal entries, and the general ledger accounts.Some of the identifying information has been entered on the form.However, carefully review each form and make sure all necessary identifying information is entered on all forms.

(1)Prepare the Federal form 941: Employer's quarterly federal return for the quarter ended December 31.Even though the year is 2017, you will use 2016 Forms.You should assume that the December taxes will be deposited on January 10 of the following year.Therefore, the total tax liabilities and the total deposits should be the same amount.Be sure to fill in all information and answer all applicable questions.

(2)Prepare the Employer's quarterly Nebraska unemployment tax return for the quarter ended December 31.Also prepare the Nebraska wage report.

(3)Prepare the Federal form 940 Federal unemployment tax return for the

year ended December 31.Even though the year is 2017, you will use 2016 Forms.There are no adjustments required on lines 9 , 10 or 11 of the form 940.Be sure you complete all required information including identifying information and applicable questions.The unemployment taxes will be deposited on January 20.

(4)Prepare one copy of the W-2 form for each employee for the year ended December 31.Be sure to fill in all appropriate amount boxes and identification boxes.None of the employees are covered by a retirement plan.None of the employees are deceased.None of the employees are statutory employees.For the W-2 forms, the Federal ID number is:47-3882497.For the W-2 forms, the Nebraska State ID number is 123456.

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Electronic Files

FileName

What you will find

File1Project Narrative

This file is the starting point for the project.Start with this file.

File2Payroll Accounting forms

This file has all of the accounting forms.Tabs at the bottom of the worksheet allow you to switch between forms.The earnings records, payroll registers, general journal, general ledger, and trial balance forms are all contained in this file.

File3Form 941 Quarterly Fed

Federal form 941: Employer's quarterly federal return

File4NE Unemployment Reports

Nebraska unemployment tax form-also called Combined Tax Report UI-11T

Nebraska Unemployment Wage Report

File5Form 940 Annual FUTA

Federal Annual Unemployment Tax Return

File6Form W-2

W-2 Forms for each employee

Enter Your Name: Use The Tabs at the Bottom to Switch Between Worksheets Use the Vertical Scroll Bar to See the rest of the Journal General Journal Date Account Title 1-Oct Cash Common Stock Page 1 Post Ref 102 $ 301 Debit Credit 250,000.00 $ 250,000.00 Cash Date Item 1-Oct Account No. Ref J1 Debit 250,000.00 Credit 102 Balance Debit Credit 250,000.00 250,000.00 Social Security Taxes Payable Date Item Ref Debit Account No. Credit Debit 0.00 211 Balance Credit 0.00 Medicare Taxes Payable Date Item Ref Account No. Debit Credit Debit 0.00 212 Balance Credit 0.00 Federal Income Taxes Payable Date Item Ref Debit Account No. Credit Debit 0.00 213 Balance Credit 0.00 0.00 State Income Taxes Payable Date Item Ref Account No. Debit Credit Debit 214 Balance Credit 0.00 Pay flex Withholding Payable Date Item Ref Account No. Debit Credit Debit 0.00 215 Balance Credit 0.00 Nebraska Unemployment Taxes Payable Date Item Ref Debit Account No. Credit Debit 0.00 216 Balance Credit 0.00 Federal Unemployment Taxes Payable Date Item Ref Debit Account No. Credit Debit 0.00 217 Balance Credit 0.00 0.00 Common Stock Date Item Account No. Ref 1-Oct Debit 1 Credit 250,000.00 Item Ref Balance Credit 250,000.00 0.00 Account No. Salaries & Wages Expense Date Debit Debit Credit Debit 301 250,000.00 610 Balance Credit 0.00 Payroll Tax Expense Date Item Ref Account No. Debit Credit Debit 0.00 613 Balance Credit 0.00 0.00 Use The Tabs at the Bottom to Switch Between Worksheets Lolita's Lovely Locks Trial Balance Debits Credits Cash Social Security Taxes Payable Medicare Taxes Payable Federal Income Taxes Payable State Income Taxes Payable Pay flex Withholding Payable Nebraska Unemployment Taxes Payable Federal Unemployment Taxes Payable Common Stock Salaries & Wages Expense Payroll Tax Expense 250,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 250,000.00 0.00 0.00 Totals 250,000.00 250,000.00 Fantastic, I am In Balance October Payroll Register Earnings Employee Name Deductions Regular Pay Overtime Pay Total Pay Lolita Lovely Linda A. Osborne Kathryn B. Jones Pay flex Deduction - Totals - - Taxable Earnings Soc Sec Medicare Fed Income State Total Net Tax Tax Tax Income Tax Deductions Pay - - - - - - - - - - - - October Taxable Unemployment Analysis Lolita Lovely Linda A. Osborne Kathryn B. Jones Prior Current Taxable Earnings - Taxable Earnings - - Cumulative Earnings Subject to Taxable Earnings Nebraska Tax Employer's Payroll Taxes Federal Tax - - NE & Federal Tax Rates Unemployment Taxes Social Security Tax Medicare Tax State Unemployment Tax Federal Unemployment Tax - - 2.4% 0.8% - - Total Payroll Tax Expense - November Payroll Register Earnings Deductions Employee Regular Overtime Total Pay flex Taxable Soc Sec Medicare Fed Income State Total Net Name Pay Pay Pay Deduction Earnings Tax Tax Tax Income Tax Deductions Pay - Lolita Lovely Linda A. Osborne Kathryn B. Jones - Totals - - - - - - - - - - - - - - November Taxable Unemployment Analysis Prior Current Taxable Earnings Taxable Earnings Cumulative Earnings Subject to Taxable Earnings Nebraska Tax Employer's Payroll Taxes Federal Tax - Lolita Lovely Linda A. Osborne Kathryn B. Jones - - - NE & Federal Tax Rates Unemployment Taxes Social Security Tax Medicare Tax State Unemployment Tax Federal Unemployment Tax - - 2.4% 0.8% - - Total Payroll Tax Expense - December Payroll Register Earnings Deductions Employee Regular Overtime Total Pay flex Taxable Soc Sec Medicare Fed Income State Total Net Name Pay Pay Pay Deduction Earnings Tax Tax Tax Income Tax Deductions Pay Lolita M Lovely Linda A. Osborne Kathryn B. Jones - Totals - - - - - - - - - - - - - - December Taxable Unemployment Analysis Prior Current Taxable Earnings Taxable Earnings Cumulative Earnings Subject to Taxable Earnings Lolita Lovely Linda A. Osborne Kathryn B. Jones Nebraska Tax Employer's Payroll Taxes Federal Tax - - - - NE & Federal Tax Rates Unemployment Taxes Social Security Tax Medicare Tax State Unemployment Tax Federal Unemployment Tax - - 2.4% 0.8% - - Total Payroll Tax Expense - Earnings Record Employee Name Social Security Number Lolita M Lovely 200-06-2005 Withholding Allowances 3 Marital Status S Pay flex Deduction 125.00 Address: 1711 NO 52nd Street Omaha, NE 68104 Earnings Monthly Pay Period Deductions Regular Overtime Total Pay flex Taxable Soc Sec Medicare Fed Income State Total Net Pay Pay Pay Deduction Earnings Tax Tax Tax Income Tax Deductions Pay October November December - - - - 3rd Quarter Totals - - - - - - - - - - - Annual Totals - - - - - - - - - - - Earnings Record Employee Name Social Security Number Linda A Osborne 002-06-1908 Withholding Allowances 0 Pay flex Deduction Marital Status M Hourly Pay Rate 80.00 $ 16.00 Address: 8554 Arbor ST Omaha, NE 68124 Earnings Monthly Pay Period Deductions Regular Overtime Total Pay flex Taxable Soc Sec Medicare Fed Income State Total Net Pay Pay Pay Deduction Earnings Tax Tax Tax Income Tax Deductions Pay October November December - 3rd Quarter Totals Annual Totals - - - - - - - - - - - - - - Earnings Record Employee Name Social Security Number Kathryn B. Jones 198-46-2558 Withholding Allowances 1 Pay flex Deduction Marital Status S Hourly Pay Rate None $ 12.00 Address: 3016 Dodge St. Omaha, NE 68103 Earnings Monthly Pay Period Deductions Regular Overtime Total Pay flex Taxable Soc Sec Medicare Fed Income State Total Net Pay Pay Pay Deduction Earnings Tax Tax Tax Income Tax Deductions Pay October November December 3rd Quarter Totals Annual Totals - - - - - - - - - - - - - - - - 941 for 2017: Form (Rev. January 2017) Employer's QUARTERLY Federal Tax Return 950117 OMB No. 1545-0029 Department of the Treasury Internal Revenue Service Report for this Quarter of 2017 Employer identification number (EIN) (Check one.) 1: January, February, March Name (not your trade name) 2: April, May, June Trade name (if any) 3: July, August, September 4: October, November, December Address Number Street Suite or room number City State Foreign country name Instructions and prior year forms are available at www.irs.gov/form941. ZIP code Foreign postal code Foreign province/county Read the separate instructions before you complete Form 941. Type or print within the boxes. Part 1: Answer these questions for this quarter. Number of employees who received wages, tips, or other compensation for the pay period including: Mar. 12 (Quarter 1), June 12 (Quarter 2), Sept. 12 (Quarter 3), or Dec. 12 (Quarter 4) 1 2 Wages, tips, and other compensation . . . . . . 2 3 Federal income tax withheld from wages, tips, and other compensation . . . . . . 3 4 If no wages, tips, and other compensation are subject to social security or Medicare tax 1 . . . . . Column 1 . . . . . . Column 2 . . . . 5a Taxable social security wages . . 5b Taxable social security tips . . . 5c Taxable Medicare wages & tips . . 5d Taxable wages & tips subject to Additional Medicare Tax withholding 5e Add Column 2 from lines 5a, 5b, 5c, and 5d 5f Section 3121(q) Notice and DemandTax due on unreported tips (see instructions) 6 Total taxes before adjustments. Add lines 3, 5e, and 5f . . . . . . . . . 7 Current quarter's adjustment for fractions of cents . . . . . . . . . 8 Current quarter's adjustment for sick pay . . . . . . . . 9 Current quarter's adjustments for tips and group-term life insurance . . . . . . . . 0.124 = 0.124 = 0.029 = 0.009 = . . . . . . Check and go to line 6. . . . . . . 5e . . 5f . . . 6 . . . . 7 . . . . . 8 . . . . . . 9 . . . . . . . . . 10 Total taxes after adjustments. Combine lines 6 through 9 . 10 11 Qualified small business payroll tax credit for increasing research activities. Attach Form 8974 11 12 Total taxes after adjustments and credits. Subtract line 11 from line 10 . . 12 13 Total deposits for this quarter, including overpayment applied from a prior quarter and overpayments applied from Form 941-X, 941-X (PR), 944-X, or 944-X (SP) filed in the current quarter 13 14 Balance due. If line 12 is more than line 13, enter the difference and see instructions 14 15 Overpayment. If line 13 is more than line 12, enter the difference . . . . . . . . . . . . . . . Check one: . . . . . . . . . . . Apply to next return. Next You MUST complete both pages of Form 941 and SIGN it. For Privacy Act and Paperwork Reduction Act Notice, see the back of the Payment Voucher. Send a refund. Cat. No. 17001Z Form 941 (Rev. 1-2017) 950217 Name (not your trade name) Part 2: Employer identification number (EIN) Tell us about your deposit schedule and tax liability for this quarter. If you are unsure about whether you are a monthly schedule depositor or a semiweekly schedule depositor, see section 11 of Pub. 15. 16 Check one: Line 12 on this return is less than $2,500 or line 12 (line 10 if the prior quarter was the fourth quarter of 2016) on the return for the prior quarter was less than $2,500, and you didn't incur a $100,000 next-day deposit obligation during the current quarter. If line 12 (line 10 if the prior quarter was the fourth quarter of 2016) for the prior quarter was less than $2,500 but line 12 on this return is $100,000 or more, you must provide a record of your federal tax liability. If you are a monthly schedule depositor, complete the deposit schedule below; if you are a semiweekly schedule depositor, attach Schedule B (Form 941). Go to Part 3. You were a monthly schedule depositor for the entire quarter. Enter your tax liability for each month and total liability for the quarter, then go to Part 3. Tax liability: . . . . Month 1 Month 2 Month 3 Total liability for quarter Total must equal line 12. You were a semiweekly schedule depositor for any part of this quarter. Complete Schedule B (Form 941), Report of Tax Liability for Semiweekly Schedule Depositors, and attach it to Form 941. Part 3: Tell us about your business. If a question does NOT apply to your business, leave it blank. 17 If your business has closed or you stopped paying wages . enter the final date you paid wages / / . . . . . . . . . . . . . Check here, and . . Check here. . 18 If you are a seasonal employer and you don't have to file a return for every quarter of the year Part 4: . 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. Designee's name and phone number Select a 5-digit Personal Identification Number (PIN) to use when talking to the IRS. No. Part 5: Sign here. You MUST complete both pages of Form 941 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. 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 Date Print your title here / / Best daytime phone Paid Preparer Use Only Check if you are self-employed Preparer's name PTIN Preparer's signature Date Firm's name (or yours if self-employed) EIN Address Phone City Page 2 State / . . . / ZIP code Form 941 (Rev. 1-2017) Form 941-V, Payment Voucher Specific Instructions Complete Form 941-V if you're making a payment with Form 941. We will use the completed voucher to credit your payment more promptly and accurately, and to improve our service to you. Making Payments With Form 941 To avoid a penalty, make your payment with Form 941 only if: Your total taxes for either the current quarter (Form 941, line 12) or the preceding quarter (Form 941, line 12 (line 10 if the preceding quarter was the fourth quarter of 2016)) are less than $2,500, you didn't incur a $100,000 next-day deposit obligation during the current quarter, and you're paying in full with a timely filed return; or You are a monthly schedule depositor making a payment in accordance with the Accuracy of Deposits Rule. See section 11 of Pub. 15 for details. In this case, the amount of your payment may be $2,500 or more. Otherwise, you must make deposits by electronic funds transfer. See section 11 of Pub. 15 for deposit instructions. Don't use Form 941-V to make federal tax deposits. Use Form 941-V when making any payment with ! Form 941. However, if you pay an amount with CAUTION Form 941 that should've been deposited, you may be subject to a penalty. See Deposit Penalties in section 11 of Pub. 15. Form Detach Here and Mail With Your Payment and Form 941. 941-V Payment Voucher Department of the Treasury Internal Revenue Service 1 Box 1Employer identification number (EIN). If you don't have an EIN, you may apply for one online by visiting the IRS website at www.irs.gov/ein. You may also apply for an EIN by faxing or mailing Form SS-4 to the IRS. If you haven't received your EIN by the due date of Form 941, write \"Applied For\" and the date you applied in this entry space. Box 2Amount paid. Enter the amount paid with Form 941. Box 3Tax period. Darken the circle identifying the quarter for which the payment is made. Darken only one circle. Box 4Name and address. Enter your name and address as shown on Form 941. Enclose your check or money order made payable to \"United States Treasury.\" Be sure to enter your EIN, \"Form 941,\" and the tax period (\"1st Quarter 2017,\" \"2nd Quarter 2017,\" \"3rd Quarter 2017,\" or \"4th Quarter 2017\") on your check or money order. Don't send cash. Don't staple Form 941-V or your payment to Form 941 (or to each other). Detach Form 941-V and send it with your payment and Form 941 to the address in the Instructions for Form 941. Note: You must also complete the entity information above Part 1 on Form 941. Don't OMB No. 1545-0029 2017 staple this voucher or your payment to Form 941. 2 Enter your employer identification number (EIN). Purpose of Form Dollars Cents Enter the amount of your payment. Make your check or money order payable to \"United States Treasury\" 4 Enter your business name (individual name if sole proprietor). 3 Tax Period 1st Quarter 3rd Quarter 2nd Quarter 4th Quarter Enter your address. Enter your city, state, and ZIP code or your city, foreign country name, foreign province/county, and foreign postal code. Form 941 (Rev. 1-2017) Privacy Act and Paperwork Reduction Act Notice. We ask for the information on Form 941 to carry out the Internal Revenue laws of the United States. We need it to figure and collect the right amount of tax. Subtitle C, Employment Taxes, of the Internal Revenue Code imposes employment taxes on wages and provides for income tax withholding. Form 941 is used to determine the amount of taxes that you owe. Section 6011 requires you to provide the requested information if the tax is applicable to you. Section 6109 requires you to provide your identification number. If you fail to provide this information in a timely manner, or provide false or fraudulent information, you may be subject to penalties. You're not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books and records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by section 6103. However, section 6103 allows or requires the IRS to disclose or give the information shown on your tax return to others as described in the Code. For example, we may disclose your tax information to the Department of Justice for civil and criminal litigation, and to cities, states, the District of Columbia, and U.S. commonwealths and possessions for use in administering their tax laws. We may also disclose this information to other countries under a tax treaty, to federal and state agencies to enforce federal nontax criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism. The time needed to complete and file Form 941 will vary depending on individual circumstances. The estimated average time is: Recordkeeping . . . . . . . . . . 13 hr., 52 min. Learning about the law or the form . . . . 47 min. Preparing, copying, assembling, and sending the form to the IRS . . . . . 1 hr., 3 min. If you have comments concerning the accuracy of these time estimates or suggestions for making Form 941 simpler, we would be happy to hear from you. You can send us comments from www.irs.gov/formcomment. Or you can send your comments to Internal Revenue Service, Tax Forms and Publications Division, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224. Don't send Form 941 to this address. Instead, see Where Should You File? in the Instructions for Form 941. YR QTR Employer Account No. Lolita's Lovely Lockes 8500 Dodge Street Federal I.D. No. Omaha, NE 68105 1st Month 2nd Month Dollars 3rd Month Cents 2. Gross wages paod for covered employment during the quarter (40lK plans are included in gross wages.) (125 cafeteria plans are NOT included) Amount here must equal Total on Wage Report 3. Wages paid each individual employee in excess of: $9,000 - 4. Total Taxable Wages (subtract item 3 from item 2) 5. Your COMBINED TAX Rate is: 6. Enter COMBINES TAX PAYMENTS DUE for this quarter. Multiply item 4 by line 5 (When this line is less than $5.00, do not include it in payment) 2.50% 7. Less previous overpayment (if applicable) - 8. Adjustment (Attach Explanation) 9. Total Amount Due: (Subtract 7 from 6, and add or subtract 8 from that total) 0.00 Make check payable to Nebraska U.C. Fund 10 Print Preparer's Name Phone Date Form UI-11T Rev. 12-17-2012 YR Report gross quarterly wages paid to each employee. INCLUDE 401K plan. DO NOT include Section 125 Cafeteria plan. Toal of all pages reported must equal Line 2 Gross Wages on Combined Tax Report. Wage Report - UI 11W QTR Employer Account Number Federal I.D. Number THIS DOCUMENT MUST BE FILED WITH THE COMBINED TAX REPORT UI-11T Social Security Number Employee's Name Gross wages paid each covered employee in this quarter Total of This Page Total of All Pages Prepared By: UI-11W Revised 12-17-2012 Phone $ $ Date - Form 940 for 2016: Employer's Annual Federal Unemployment (FUTA) Tax Return Department of the Treasury Internal Revenue Service Employer identification number (EIN) 850113 OMB No. 1545-0028 Type of Return (Check all that apply.) Name (not your trade name) a. Amended Trade name (if any) b. Successor employer Address c. No payments to employees in 2016 d. Final: Business closed or stopped paying wages Number Street Suite or room number Instructions and prior-year forms are available at www.irs.gov/form940. City ZIP code State Foreign country name Foreign postal code Foreign province/county 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 1b If you had to pay state unemployment tax in one state only, enter the state abbreviation . 1a If you had to pay state unemployment tax in more than one state, you are a multi-state employer . . . . . . . . . . . . . . . . . . . . . . . . . . . 1b 2 If you paid wages in a state that is subject to CREDIT REDUCTION . Part 2: . . . . . . Check here. Complete Schedule A (Form 940). 2 Determine your FUTA tax before adjustments. If any line does NOT apply, leave it blank. 3 Total payments to all employees . . . . . . . 4 Payments exempt from FUTA tax . . . . . . . 5 . . . . . . . . . . . 4 Check all that apply: 4a Fringe benefits 4c 4b Group-term life insurance 4d Total of payments made to each employee in excess of $7,000 . . . . . . . . . . . . . . . . 5 . . . 4e Retirement/Pension Dependent care . 3 Other . 6 Subtotal (line 4 + line 5 = line 6) . . . . . . . . . . 6 7 Total taxable FUTA wages (line 3 - line 6 = line 7). See instructions . . . . . . . . . 7 8 FUTA tax before adjustments (line 7 x 0.006 = line 8) . . . . . . . . . 8 Part 3: . . . . . . . . . . . . . . 10 11 If credit reduction applies, enter the total from Schedule A (Form 940) Part 4: . . . . . . . . . . 11 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 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 . . . 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 0.054 (line 7 0.054 = line 9). Go to line 12 . . . . . . . . . . 9 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 9 Check here. Complete Schedule A (Form 940). . . . . . . . . . . . . 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 Form 940-V, Payment Voucher. Cat. No. 11234O Form 940 (2016) 850212 Employer identification number (EIN) Name (not your trade name) 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. 17 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 . . . . . Total tax liability for the year (lines 16a + 16b + 16c + 16d = line 17) 17 Part 6: Total must equal line 12. 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. 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 Date Print your title here / Best daytime phone / Paid Preparer Use Only Check if you are self-employed Preparer's name PTIN Preparer's signature Date Firm's name (or yours if self-employed) EIN Address Phone City Page 2 State / / ZIP code Form 940 (2016) Form 940-V, Payment Voucher Purpose of Form Specific Instructions Complete Form 940-V if you're making a payment with Form 940. We will use the completed voucher to credit your payment more promptly and accurately, and to improve our service to you. Box 1Employer Identification Number (EIN). If you don't have an EIN, you may apply for one online. Go to IRS.gov and type \"EIN\" in the search box. You may also apply for an EIN by faxing or mailing Form SS-4 to the IRS. If you haven't received your EIN by the due date of Form 940, write \"Applied For\" and the date you applied in this entry space. Box 2Amount paid. Enter the amount paid with Form 940. Box 3Name and address. Enter your name and address as shown on Form 940. Enclose your check or money order made payable to \"United States Treasury.\" Be sure to enter your EIN, \"Form 940,\" and \"2016\" on your check or money order. Don't send cash. Don't staple Form 940-V or your payment to Form 940 (or to each other). Detach Form 940-V and send it with your payment and Form 940 to the address provided in the Instructions for Form 940. Note: You must also complete the entity information above Part 1 on Form 940. To avoid a penalty, make your payment with your 2016 Form 940 only if your FUTA tax for the fourth quarter (plus any undeposited amounts from earlier quarters) is $500 or less. If your total FUTA tax after adjustments (Form 940, line 12) is more than $500, you must make deposits by electronic funds transfer. See When Must You Deposit Your FUTA Tax? in the Instructions for Form 940. Also see sections 11 and 14 of Pub. 15 for more information about deposits. Use Form 940-V when making any payment with Form 940. However, if you pay an amount with Form 940 that should've been deposited, you CAUTION may be subject to a penalty. See Deposit Penalties in section 11 of Pub. 15. ! Form Detach Here and Mail With Your Payment and Form 940. 940-V Department of the Treasury Internal Revenue Service 1 Enter your employer identification number (EIN). Payment Voucher Don't 2 OMB No. 1545-0028 2016 staple or attach this voucher to your payment. Enter the amount of your payment. Making Payments With Form 940 Dollars Cents Make your check or money order payable to \"United States Treasury\" 3 Enter your business name (individual name if sole proprietor). Enter your address. Enter your city, state, and ZIP code or your city, foreign country name, foreign province/county, and foreign postal code. Form 940 (2016) Privacy Act and Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the United States. We need it to figure and collect the right amount of tax. Chapter 23, Federal Unemployment Tax Act, of Subtitle C, Employment Taxes, of the Internal Revenue Code imposes a tax on employers with respect to employees. This form is used to determine the amount of the tax that you owe. Section 6011 requires you to provide the requested information if you are liable for FUTA tax under section 3301. Section 6109 requires you to provide your identification number. If you fail to provide this information in a timely manner or provide a false or fraudulent form, you may be subject to penalties. You aren't required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books and records relating to a form or instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by section 6103. However, section 6103 allows or requires the IRS to disclose or give the information shown on your tax return to others as described in the Code. For example, we may disclose your tax information to the Department of Justice for civil and criminal litigation, and to cities, states, the District of Columbia, and U.S. commonwealths and possessions to administer their tax laws. We may also disclose this information to other countries under a tax treaty, to federal and state agencies to enforce federal nontax criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism. The time needed to complete and file this form will vary depending on individual circumstances. The estimated average time is: Recordkeeping . . . . . . . . . . 9 hr., 19 min. Learning about the law or the form . . 1 hr., 23 min. Preparing, copying, assembling, and sending the form to the IRS . . . . . 1 hr., 36 min. If you have comments concerning the accuracy of these time estimates or suggestions for making Form 940 simpler, we would be happy to hear from you. You can send us comments from www.irs.gov/formspubs. Click on More Information and then click on Give us feedback. Or you can send your comments to Internal Revenue Service, Tax Forms and Publications Division, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224. Don't send Form 940 to this address. Instead, see Where Do You File? in the Instructions for Form 940. a Control Number 22222 OMB No. 1545-00008 1 Wages, Tips, and othe Compensation b Employer Identification Number (EIN) 3 Social Security Wages c Employer's Name, Adress, and ZIP code 5 Medicare Wages and Tips 7 Social Security Tips 9 Advanced EIC Payment d Employee's Social Security Number e Employee's First Name and Initieal Last Name Suff. 11 Non Qualified Plans 13 Statutory Retirement Third Pary Employee Plan Sick Pay 14 Other f Employees Address and Zip Code 15 State Employers State ID No Form W-2 16 State Wages, Tips, Etc. 18 Local Wages, Tips, Etc 2016 Wage and Tax Statement a Control Number 17 State Income Tax 22222 OMB No. 1545-00008 1 Wages, Tips, and othe Compensation b Employer Identification Number (EIN) 3 Social Security Wages c Employer's Name, Adress, and ZIP code 5 Medicare Wages and Tips 7 Social Security Tips 9 Advanced EIC Payment d Employee's Social Security Number e Employee's First Name and Initieal Last Name Suff. 11 Non Qualified Plans 13 Statutory Retirement Third Pary Employee Plan Sick Pay 14 Other f Employees Address and Zip Code 15 State Employers State ID No Form W-2 16 State Wages, Tips, Etc. 18 Local Wages, Tips, Etc 2016 Wage and Tax Statement a Control Number 17 State Income Tax 22222 OMB No. 1545-00008 1 Wages, Tips, and othe Compensation b Employer Identification Number (EIN) 3 Social Security Wages c Employer's Name, Adress, and ZIP code 5 Medicare Wages and Tips 7 Social Security Tips 9 Advanced EIC Payment d Employee's Social Security Number e Employee's First Name and Initieal Last Name Suff. 11 Non Qualified Plans 13 Statutory Retirement Third Pary Employee Plan Sick Pay 14 Other f Employees Address and Zip Code 15 State Employers State ID No Form W-2 Wage and Tax Statement 16 State Wages, Tips, Etc. 2016 17 State Income Tax 18 Local Wages, Tips, Etc 8 s, and othe Compensation 2 Federal Income Tax Withheld ty Wages 4 Social Security Tax Withheld ages and Tips 6 Medicare Tax Withheld ty Tips 8 Allocated Tips C Payment 10 Dependent Care Benefits ed Plans 12a etirement Third Pary Plan Sick Pay 12b Local Wages, Tips, Etc 12c 12d 19 Local Income Tax 8 s, and othe Compensation 2 Federal Income Tax Withheld ty Wages 4 Social Security Tax Withheld ages and Tips 6 Medicare Tax Withheld ty Tips 8 Allocated Tips C Payment 10 Dependent Care Benefits ed Plans 12a etirement Third Pary 12b 20 Locality Name Plan Sick Pay Local Wages, Tips, Etc 12c 12d 19 Local Income Tax 20 Locality Name 8 s, and othe Compensation 2 Federal Income Tax Withheld ty Wages 4 Social Security Tax Withheld ages and Tips 6 Medicare Tax Withheld ty Tips 8 Allocated Tips C Payment 10 Dependent Care Benefits ed Plans 12a etirement Third Pary Plan Sick Pay 12b Local Wages, Tips, Etc 12c 12d 19 Local Income Tax 20 Locality Name