The net FUTA tax liability for each quarter of 2019 was as follows: 1st, $220.10; 2nd, $107.60; 3rd, $101.00; and 4th, $56.10 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 stateArizona.

b. Total payments made to employees during calendar year 2019:

California	$102,310
Arizona	18,490
Total	$120,800

c. Employer contributions in California into employees' 401(k) retirement plan: $3,500.

d. Payments made to employees in excess of $7,000: $36,500 ($11,490 from Arizona and $25,010 from California).

e. Form is to be signed by Mickey Vixon, Vice President, and dated 1/31/20.

3	Total payments to all employees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		3
4	Payments exempt from FUTA tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	4
	Select: Retirement/Pension
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

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

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

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.

Postal Abbreviation	FUTA Taxable Wages	Reduction Rate	Credit Reduction	Postal Abbreviation	FUTA Taxable Wages	Reduction Rate	Credit Reduction
CA		0.021