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 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.
The net FUTA tax liability for each quarter of 20-- 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 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 stateLouisiana.
b. Total payments made to employees during calendar year 20--:
| 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. Confirm that the form was signed by Vernon Scott, Vice President, and dated 1/31/--.
f. Confirm that the correct phone number has been inserted on the form (834) 555-5551.
If an input box does not require an entry, leave it blank. When required, round amounts to the nearest cent.
| Form 940 for 20--: | Employer's Annual Federal Unemployment (FUTA) Tax Return | | Department of the Treasury Internal Revenue Service | OMB No. 1545-0028 | | Employer identification number (EIN) | | | Name (not your trade name) | MONROE TRUCKING COMPANY | | | | | Address | | | | | Number | Street | Suite or room number | | | | | | | | | | | | | | Foreign country name | | Foreign province/county | | Foreign postal code | | | | | | | Type of Return (Select one.) | | None of these Go to www.irs.gov/Form940 for instructions and the latest information. | | | | 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. See instructions before completing Part 1. | | 1a | If you had to pay state unemployment tax in one state only, enter the state abbreviation . . . . . . . . . . | 1a | | | 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). | | 2 | If you paid wages in a state that is subject to CREDIT REDUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . | 2 | Check here. Complete Schedule A (Form 940). | | Part 2: | Determine your FUTA tax before adjustments. If any line does NOT apply, leave it blank. | | 3 | Total payments to all employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 3 | fill in the blank 2 | | 4 | Payments exempt from FUTA tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 4 fill in the blank 3 | | | | | Check all that apply: Retirement/Pension | | | | | 5 | Total of payments made to each employee in excess of $7,000 . . . . . . . . . . | 5 fill in the blank 5 | | | | 6 | Subtotal (line 4 + line 5 = line 6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 6 | fill in the blank 6 | | 7 | Total taxable FUTA wages (line 3 line 6 = line 7). See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . | 7 | fill in the blank 7 | | 8 | FUTA tax before adjustments (line 7 x 0.006 = line 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 8 | fill in the blank 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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 9 | fill in the blank 9 | | 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), fill out the worksheet in the instructions. Enter the amount from line 7 of the worksheet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . | 10 | fill in the blank 10 | | 11 | If credit reduction applies, enter the total from Schedule A (Form 940) . . . . . . . . . . . . . . . . . . . . . . . . . . . | 11 | fill in the blank 11 | | 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 | fill in the blank 12 | | 13 | FUTA tax deposited for the year, including any overpayment applied from a prior year . . . . . . . . . . . | 13 | fill in the blank 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 | fill in the blank 14 | | 15 | Overpayment. If line 13 is more than line 12, enter the excess on line 15 and check a box below . . . . . . . . . | 15 | fill in the blank 15 | | | | You MUST fill out both pages of this form and SIGN it. | Check one: | Apply to next return. | Send a refund. | | | | | For Privacy Act and Paperwork Reduction Act Notice, see the back of the Payment Voucher. | Cat. No. 11234O | Form 940 (2018) | |
