Since the SUTA rates changes are made at the end of each year and there is much discussion about changes to the FUTA rate, the available 2017 rates were used for FUTA and SUTA Note For this textbook edition the rate 0 6 was used for the FUTA tax rate for employers 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 2018 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, 2019 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 2018 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 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) 0 0 0 0 0 3 7 9 3 Name (not your trade name) MONROE TRUCKING COMPANY Trade name (if any) Address 423 BRISTOL PIKE Number Street Suite or room number LAREDO TX 78040 4523 City State ZIP code Foreign country name Foreign province county Foreign postal code Type of Return (Select one ) 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 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 4 Payments exempt from FUTA tax 4 Check all that apply 5 Total of payments made to each employee in excess of $7,000 5 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 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 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 11 If credit reduction applies, enter the total from Schedule A (Form 940) 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 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 fill out 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) Name (not your trade name) Employer identification number (EIN) MONROE TRUCKING 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 16c 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 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 Sign your name here Vernon Scott Print your name here Vernon Scott Print your title here Vice President Date 1 31 19 Best daytime phone 834 555 5551 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 State ZIP code Page 2 Form 940 (2016) Source Internal Revenue Service Schedule A (Form 940) for 20 Multi State Employer and Credit Reduction Information Department of the Treasury Internal Revenue Service OMB No 1545 0028 Employer identification number (EIN) 0 0 0 0 0 3 7 9 3 Name (not your trade name) MONROE TRUCKING COMPANY 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 Postal Abbreviation FUTA Taxable Wages Reduction Rate Credit Reduction Postal Abbreviation FUTA Taxable Wages Reduction Rate Credit Reduction AK 0 000 NC 0 000 AL 0 000 ND 0 000 AR 0 000 NE 0 000 AZ 0 000 NH 0 000 CA 0 018 NJ 0 000 CO 0 000 NM 0 000 CT 0 000 NV 0 000 DC 0 000 NY 0 000 DE 0 000 OH 0 000 FL 0 000 OK 0 000 GA 0 000 OR 0 000 HI 0 000 PA 0 000 IA 0 000 RI 0 000 ID 0 000 SC 0 000 IL 0 000 SD 0 000 IN 0 000 TN 0 000 KS 0 000 TX 0 000 KY 0 000 UT 0 000 LA 0 000 VA 0 000 MA 0 000 VT 0 000 MD 0 000 WA 0 000 ME 0 000 WI 0 000 MI 0 000 WV 0 000 MN 0 000 WY 0 000 MO 0 000 PR 0 000 MS 0 000 VI 0 018 MT 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 16997C Schedule A (Form 940) 2016 Source Internal Revenue Service FIGURE 5 2 Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return (page 1) 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) 0 0 0 0 0 0 3 2 0 Name (not your trade name) SHANNON HEATING COMPANY Trade name (if any) Address P O BOX 1803 Number Street Suite or room number LANSDOWNE PA 19019 3636 City State ZIP code Foreign country name Foreign province county Foreign postal code Type of Return (Check all that apply ) a Amended b Successor employer c No payments to employees in 20 d Final Business closed or stopped paying wages Instructions and prior year forms are available at www irs gov form940 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 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 3 122,534 29 4 Payments exempt from FUTA tax 4 4,300 00 Check all that apply 4a Fringe benefits 4c Fringe benefits 4e Other 4b Group term life insurance 4d Dependent care 5 Total of payments made to each employee in excess of $7,000 5 21,017 62 6 Subtotal (line 4 line 5 line 6) 6 25,317 62 7 Total taxable FUTA wages (line 3 line 6 line 7) (see instructions) 7 97,216 67 8 FUTA tax before adjustments (line 7 x 006 line 8) 8 583 30 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 054 (line 7 054 line 9) Go to line 12 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), 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) 11 628 53 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 1,211 83 13 FUTA tax deposited for the year, including any overpayment applied from a prior year 13 562 20 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) 14 649 63 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 Form 940 V, Payment Voucher Cat No 11234O Form 940 (2016) Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return (page 2) Name (not your trade name) Employer identification number (EIN) SHANNON HEATING COMPANY 00 0000320 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 203 42 16b 2nd quarter (April 1 June 30) 16b 259 95 16c 3rd quarter (July 1 September 30) 16c 98 83 16d 4th quarter (October 1 December 31) 16d 649 63 17 Total tax liability for the year (lines 16a 16b 16c 16d line 17) 17 1,211 83 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 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 Sign your name here J D Shannon Print your name here J D SHANNON Print your title here PRESIDENT Date 1 31 19 Best daytime phone (215) 555 1234 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 State ZIP code Page 2 Form 940 (2016 FIGURE 5 4 Required Form for Multi State Employers Schedule A (Form 940) for 20 Multi State Employer and Credit Reduction Information Department of the Treasury Internal Revenue Service OMB No 1545 0028 Employer identification number (EIN) 0 0 0 0 0 0 3 2 0 Name (not your trade name) SHANNON HEATING COMPANY See the instructions on page 2 File this schedule with Form 940 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 Postal Abbreviation FUTA Taxable Wages Reduction Rate Credit Reduction Postal Abbreviation FUTA Taxable Wages Reduction Rate Credit Reduction AK 000 NC 000 AL 000 ND 000 AR 000 NE 000 AZ 000 NH 000 CA 34,918 07 018 628 53 NJ 000 CO 000 NM 000 CT 000 NV 000 DC 000 NY 000 DE 000 OH 000 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 018 MT 000 Total Credit Reduction Add all amounts shown in the Credit Reduction boxes Enter the total here and on Form 940, line 11 628 53 For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 940 Cat No 16997C Schedule A (Form 940) 2016

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Since the SUTA rates changes are made at the end of each year and there is much discussion about changes to the FUTA rate, the

Since the SUTA rates changes are made at the end of each year and there is much discussion about changes to the FUTA rate, the available 2017 rates were used for FUTA and SUTA.

Note: For this textbook edition the rate 0.6% was used for the FUTA tax rate for employers.

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 2018 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, 2019. 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 2018:

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.

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

Trade name (if any)

Address

423 BRISTOL PIKE

Number

Street

Suite or room number

LAREDO

78040-4523

City

State

ZIP code

Foreign country name

Foreign province/county

Foreign postal code

Type of Return (Select one.)

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.

If you had to pay state unemployment tax in one state only, enter the state abbreviation . . . . . . . . . .

If you had to pay state unemployment tax in more than one state, you are a multi-state employer . . .

? Check here. Complete Schedule A (Form 940).

If you paid wages in a state that is subject to CREDIT REDUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . .

? 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
4	Payments exempt from FUTA tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	4
	Check all that apply:
5	Total of payments made to each employee in excess of $7,000 . . . . . . . . . . .	5
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:

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
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
11	If credit reduction applies, enter the total from Schedule A (Form 940) . . . . . . . . . . . . . . . . . . . . . . . . . . .	11

Part 4:

Determine your FUTA tax and balance due or overpayment. If any line does NOT apply, leave it blank.

Total FUTA tax after adjustments (lines 8 + 9 + 10 + 11 = line 12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

FUTA tax deposited for the year, including any overpayment applied from a prior year . . . . . . . . . . .

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 . . . . . . . . . . . . . . . . . . . . . . . . . .

Overpayment. If line 13 is more than line 12, enter the excess on line 15 and check a box below. . . . . . . . .

? You MUST fill out 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)

Name (not your trade name)	Employer identification number (EIN)
MONROE TRUCKING 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 + 16c + 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.

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.

?	Sign your name here

Vernon Scott

Print your name here

Vernon Scott

Print your title here

Vice President

Date

1/31/19

Best daytime phone

834-555-5551

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

State

ZIP code

Page 2

Form 940 (2016) Source: Internal Revenue Service

Schedule A (Form 940) for 20--:
Multi-State Employer and Credit Reduction Information Department of the Treasury Internal Revenue Service	OMB No. 1545-0028

Employer identification number (EIN)

Name (not your trade name)

MONROE TRUCKING COMPANY

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.
Postal Abbreviation	FUTA Taxable Wages	Reduction Rate	Credit Reduction	Postal Abbreviation	FUTA Taxable Wages	Reduction Rate	Credit Reduction
? AK		0.000		? NC		0.000
? AL		0.000		? ND		0.000
? AR		0.000		? NE		0.000
? AZ		0.000		? NH		0.000
? CA		0.018		? NJ		0.000
? CO		0.000		? NM		0.000
? CT		0.000		? NV		0.000
? DC		0.000		? NY		0.000
? DE		0.000		? OH		0.000
? FL		0.000		? OK		0.000
? GA		0.000		? OR		0.000
? HI		0.000		? PA		0.000
? IA		0.000		? RI		0.000
? ID		0.000		? SC		0.000
? IL		0.000		? SD		0.000
? IN		0.000		? TN		0.000
? KS		0.000		? TX		0.000
? KY		0.000		? UT		0.000
? LA		0.000		? VA		0.000
? MA		0.000		? VT		0.000
? MD		0.000		? WA		0.000
? ME		0.000		? WI		0.000
? MI		0.000		? WV		0.000
? MN		0.000		? WY		0.000
? MO		0.000		? PR		0.000
? MS		0.000		? VI		0.018
? MT		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. 16997C

Schedule A (Form 940) 2016 Source: Internal Revenue Service

FIGURE 5.2 Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return (page 1)

_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)

SHANNON HEATING COMPANY

Trade name (if any)

Address

P.O. BOX 1803

^Number

^Street

^{Suite or room number}

LANSDOWNE

19019 - 3636

^City

^State

^{ZIP code}

^{Foreign country name}

^{Foreign province/county}

^{Foreign postal code}

Type of Return (Check all that apply.)

? a.	Amended
? b.	Successor employer
? c.	No payments to employees in 20--
? d.	Final: Business closed or stopped paying wages
Instructions and prior-year forms are available at www.irs.gov/form940.

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.

If you had to pay state unemployment tax in one state only, enter the state abbreviation . . . . . . . . . .

If you had to pay state unemployment tax in more than one state, you are a multi-state employer . .

?	Check here. Complete Schedule A (Form 940).

If you paid wages in a state that is subject to CREDIT REDUCTION . . . . . . . . . . . . . . . . . . . . . . . . . .

?	Check here. Complete Schedule A (Form 940).

Part 2:

Determine your FUTA tax before adjustments. If any line does NOT apply, leave it blank.

Total payments to all employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

122,534.29

Payments exempt from FUTA tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4,300.00

Check all that apply:	4a ? Fringe benefits	4c ? Fringe benefits	4e ? Other
	4b ? Group-term life insurance	4d ? Dependent care

Total of payments made to each employee in excess of $7,000 . . . . . .

21,017.62

Subtotal (line 4 + line 5 = line 6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

25,317.62

Total taxable FUTA wages (line 3 line 6 = line 7) (see instructions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

97,216.67

FUTA tax before adjustments (line 7 x .006 = line 8) . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . .

583.30

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 .054 (line 7 .054 = line 9). Go to line 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	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), 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	628.53

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	1,211.83

13	FUTA tax deposited for the year, including any overpayment applied from a prior year . . . . . . . . . .	13	562.20

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	649.63

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 Form 940-V, Payment Voucher.

Cat. No. 11234O

Form 940 (2016)

Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return (page 2)

Name (not your trade name)	Employer identification number (EIN)
SHANNON HEATING COMPANY	00-0000320

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	203.42

	16b	2nd quarter (April 1 June 30) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	16b	259.95

	16c	3rd quarter (July 1 September 30) . . . . . . . . . . . . . . . . . . . . . . . . . . .	16c	98.83

	16d	4th quarter (October 1 December 31) . . . . . . . . . . . . . . . . . . . . . . . . .	16d	649.63

17	Total tax liability for the year (lines 16a + 16b + 16c + 16d = line 17)		17	1,211.83	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.

? 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.

?	Sign your name here

J.D. Shannon

Print your name here

J.D. SHANNON

Print your title here

PRESIDENT

Date

1 / 31 / 19

Best daytime phone

(215) 555 1234

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

State

ZIP code

Page 2

Form 940 (2016

FIGURE 5.4 Required Form for Multi-State Employers

Schedule A (Form 940) for 20--:
Multi-State Employer and Credit Reduction Information ^{Department of the Treasury Internal Revenue Service}	_{OMB No. 1545-0028}

Employer identification number (EIN)

Name (not your trade name)

SHANNON HEATING COMPANY

See the instructions on page 2. File this schedule with Form 940.

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.
Postal Abbreviation	FUTA Taxable Wages	Reduction Rate	Credit Reduction	Postal Abbreviation	FUTA Taxable Wages	Reduction Rate	Credit Reduction
? AK	.	.000	.	? NC	.	.000	.
? AL	.	.000	.	? ND	.	.000	.
? AR	.	.000	.	? NE	.	.000	.
? AZ	.	.000	.	? NH	.	.000	.
? CA	34,918 . 07	.018	628 . 53	? NJ	.	.000	.
? CO	.	.000	.	? NM	.	.000	.
? CT	.	.000	.	? NV	.	.000	.
? DC	.	.000	.	? NY	.	.000	.
? DE	.	.000	.	? OH	.	.000	.
? 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	.	.018	.
? MT	.	.000	.

	Total Credit Reduction. Add all amounts shown in the Credit Reduction boxes. Enter the total here and on Form 940, line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
		628 . 53