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, $220.40; 2nd, $106.20; 3rd, $97.70; and 4th, $70.94 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 | $103,880 |
| Arizona | 17,380 |
| Total | $121,260 |
c. Employer contributions in California into employees' 401(k) retirement plan: $3,540.
d. Payments made to employees in excess of $7,000: $35,180 ($10,380 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.
Since the SUTA rates changes are made at the end of each year, the available 2019 rates were used for FUTA and SUTA. 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 The net FUTA tax liability for each quarter of 20 - was as follows: 1st, $220.40; 2nd, $106.20; 3rd, $97.70; and 4th, $70.94 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 $103,880 Arizona 17,380 Total $121,260 C. Employer contributions in California into employees' 401(k) retirement plan: $3,540. d. Payments made to employees in excess of $7,000: $35,180 ($10,380 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. Emplover's Annual Federal Unemployment (FUTA) Tax Return orm 940 for 20-- : Employer's Annual Federal Unemployment (FUTA) Tax Return Department of the Treasury Internal Revenue Service OMB No. 1545-002 Employer identification number (EIN) 0 0 0 0 3 7 9 3 Type of Return (Select one.) Name (not your trade name) RUNSON MOVING COMPANY Trade name (if any) Go to www.irs.gov/Form940 for instructions and the latest information. Address 423 BRISTOL PIKE Number Street Suite or room number SACRAMENTO CA 94203-4523 City State ZIP code Foreign country name Foreign province/county Foreign postal code lead the separate instructions before you fill out this form. Please type or print within the boxes. art 1: Tell us about your return. If any line does NOT apply, leave it blank. See instruction before completing Part 1. la If you had to pay state unemployment tax in one state only, enter the state abbreviation la 1b If you had to pay state unemployment tax in more than one state, you are a multi-state employer ... 1b Check here. Complete Schedule A (Form 940). Check here. Part 2: Determine your FUTA tax before adjustments. If any line does NOT apply, leave it blank. 3 Total payments to all employees . . 3 4 Payments exempt from FUTA tax Select: 5 6 7 8 8 5 Total of payments made to each employee in excess of $7,000. 6 Subtotal (line 4 + line 5 = line 6).. 7 Total taxable FUTA wages (line 3 line 6 = line 7). See instructions. FUTA tax before adjustments (line 7 x 0.006 = line 8)..... 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 .... 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. 12 Total FUTA tax after adjustments (lines 8 + 9 + 10 + 11 = line 12)... 13 FUTA tax deposited for the year, including any overpayment applied from a prior year. 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. 14 10 11 II 12 13 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 160 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 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. Desianes's name and phone number Postal Abbreviation FUTA Taxable Wages Reduction Rate Credit Reduction Postal Abbreviation FUTA Taxable Wages Reduction Rate Credit Reduction X 0.000 NC X 0.000 O AL x 0.000 OND X 0.000 AR X 0.000 ONE X 0.000 AZ X 0.000 X 0.000 CA X 0.000 NJ X 0.000 O CO X 0.000 NM X 0.000 X 0.000 NV X 0.000 DC x 0.000 NY x 0.000 O DE X 0.000 X 0.000 FL x 0.000 OOK X 0.000 D GA X 0.000 O OR X 0.000 X 0.000 X 0.000 DIA X 0.000 RI X 0.000 ID X 0.000 SC X 0.000 IL X 0.000 SD x 0.000 IN X 0.000 D TN x 0.000 ID X 0.000 SC X 0.000 IL x 0.000 SD X 0.000 IN X 0.000 D TN X 0.000 KS x 0.000 X 0.000 O KY x 0.000 DUT X 0.000 O LA X 0.000 DVA X 0.000 X 0.000 O VT X 0.000 DMD X 0.000 O WA X 0.000 O ME x 0.000 WI X 0.000 MI x 0.000 DWV X 0.000 O MN X 0.000 O WY X 0.000 MO x 0.000 PR X 0.000 MS x 0.000 VI x 0.024 o MT x 0.000 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. 169970 Schedule A (Form 940) 2018 Source: Internal Revenue Service
