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 2018 rates were used for FUTA and SUTA. Note: Since the 2018 Form 940 and Schedule A were not available at print date, the 2017 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 2019 was as follows: 1st, $215.80; 2nd, $105.90; 3rd, $98.50; and 4th, $55.84 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, 2020. 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 2019: California $100,810 Arizona 19,370 Total $120,180 c. Employer contributions in California into employees' 401(k) retirement plan: $3,450. d. Payments made to employees in excess of $7,000: $37,390 ($12,370 from Arizona and $25,020 from California). e. Form is to be signed by Mickey Vixon, Vice President, and dated 1/31/20. 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. 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) RUNSON MOVING COMPANY Trade name (if any) 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 Type of Return (Select one.) 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 instruction 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 4 Payments exempt from FUTA tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Select: 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), 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 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 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. 11234O 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 + 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 Mickey Vixon Print your name here Mickey Vixon Print your title here Vice President Date 1/31/20 Best daytime phone 219-555-8310 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 (2018) 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 See the instructions on page 2. File this schedule with Form 940. Employer identification number (EIN) 0 0 0 0 0 3 7 9 3 Name (not your trade name) Runson Moving 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 0.021 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 0.021 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) 2018 Source: Internal Revenue Service