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Federal Multi-State Employer and Credit Reduction Information
Extracted from PDF file 2023-federal-940-schedule-a.pdf, last modified November 2023Multi-State Employer and Credit Reduction Information
Schedule A (Form 940) for 2023: 860312 Multi-State Employer and Credit Reduction Information OMB No. 1545-0028 Department of the Treasury — Internal Revenue Service See the instructions on page 2. File this schedule with Form 940. — Employer identification number (EIN) Name (not your trade name) 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 AK AL AR AZ CA CO CT DC DE FL GA HI IA ID IL IN KS KY LA MA MD ME MI MN MO MS MT FUTA Taxable Wages . . . . . . . . . . . . . . . . . . . . . . . . . . . Reduction Rate Credit Reduction . . . . . . . . . . . . . . . . . . . . . . . . . . . Postal Abbreviation FUTA Taxable Wages NC ND NE NH NJ NM NV NY OH OK OR PA RI SC SD TN TX UT VA VT WA WI WV WY PR VI . . . . . . . . . . . . . . . . . . . . . . . . . . Reduction Rate 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 Credit Reduction . . . . . . . . . . . . . . . . . . . . . . . . . . . Schedule A (Form 940) 2023 Instructions for Schedule A (Form 940) for 2023: 860412 Multi-State Employer and Credit Reduction Information Specific Instructions: Completing Schedule A Step 1. Place an “X” in the box of every state (including the District of Columbia, Puerto Rico, and the U.S. Virgin Islands) in which you had to pay state unemployment taxes this year, even if the state’s credit reduction rate is zero. Note: Don’t enter your state unemployment wages in the FUTA Taxable Wages box. Note: Make sure that you have applied for a state reporting number for your business. If you don’t have an unemployment account in a state in which you paid wages, contact the state unemployment agency to receive one. For a list of state unemployment agencies, visit the U.S. Department of Labor’s website at https://oui.doleta.gov/unemploy/agencies.asp. Enter your total in the Credit Reduction box at the end of the line. The table below provides the two-letter postal abbreviations used on Schedule A. State Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District of Columbia Postal Abbreviation AL AK AZ AR CA CO CT DE DC State Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Postal Abbreviation MT NE NV NH NJ NM NY NC ND Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky FL GA HI ID IL IN IA KS KY Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas OH OK OR PA RI SC SD TN TX Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri LA ME MD MA MI MN MS MO Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming Puerto Rico U.S. Virgin Islands UT VT VA WA WV WI WY PR VI Credit reduction states for 2023. The credit reduction rate for California and New York is 0.006 (0.6%). The credit reduction rate for the U.S. Virgin Islands is 0.039 (3.9%). Step 2. You’re subject to credit reduction if you paid FUTA taxable wages that were also subject to state unemployment taxes in any state listed that has a credit reduction rate greater than zero. In the FUTA Taxable Wages box, enter the total FUTA taxable wages that you paid in any state that is subject to credit reduction. (The FUTA wage base for all states is $7,000.) However, don’t include in the FUTA Taxable Wages box wages that were excluded from state unemployment tax. For example, if you paid $5,000 in FUTA taxable wages in a credit reduction state but $1,000 of those wages was excluded from state unemployment tax, report $4,000 in the FUTA Taxable Wages box. Page 2 Enter the reduction rate and then multiply the total FUTA taxable wages by the reduction rate. Step 3. Total credit reduction To calculate the total credit reduction, add up all of the Credit Reduction boxes and enter the amount in the Total Credit Reduction box. Then enter the total credit reduction on Form 940, line 11. Example 1 You paid $20,000 in wages to each of three employees in State A. State A is subject to credit reduction at a rate of 0.006 (0.6%). Because you paid wages in a state that is subject to credit reduction, you must complete Schedule A and file it with Form 940. Total payments to all employees in State A . . . . . . $60,000 Payments exempt from FUTA tax (see the Instructions for Form 940) . . . . . . . . Total payments made to each employee in excess of $7,000 (3 x ($20,000 - $7,000)) . . . . . . . $39,000 Total FUTA taxable wages you paid in State A entered in the FUTA Taxable Wages box ($60,000 - $0 - $39,000) . . . $21,000 Credit reduction rate for State A . . . . . . . . $0 . . . . Total credit reduction for State A ($21,000 x 0.006) . . . . $126.00 0.006 ! ▲ Don’t include in the FUTA Taxable Wages box wages in excess of the $7,000 wage base for each employee subject to state unemployment insurance in the credit CAUTION reduction state. The credit reduction applies only to FUTA taxable wages that were also subject to state unemployment tax. In this case, you would enter $126.00 in the Total Credit Reduction box and then enter that amount on Form 940, line 11. Example 2 You paid $48,000 ($4,000 a month) in wages to Mary Smith and no payments were exempt from FUTA tax. Mary worked in State B (not subject to credit reduction) in January and then transferred to State C (subject to credit reduction) on February 1. Because you paid wages in more than one state, you must complete Schedule A and file it with Form 940. The total payments in State B that aren’t exempt from FUTA tax are $4,000. Because this payment to Mary doesn’t exceed the $7,000 FUTA wage base, the total FUTA taxable wages paid in State B are $4,000. The total payments in State C that aren’t exempt from FUTA tax are $44,000. However, $4,000 of FUTA taxable wages was paid in State B with respect to Mary. Therefore, the total FUTA taxable wages with respect to Mary in State C are $3,000 ($7,000 (FUTA wage base) - $4,000 (total FUTA taxable wages paid in State B)). Enter $3,000 in the FUTA Taxable Wages box, multiply it by the reduction rate, and then enter the result in the Credit Reduction box. Attach Schedule A to Form 940 when you file your return.
2023 Schedule A (Form 940)
More about the Federal 940 (Schedule A) Corporate Income Tax Tax Credit TY 2023
We last updated the Multi-State Employer and Credit Reduction Information in January 2024, so this is the latest version of 940 (Schedule A), fully updated for tax year 2023. You can download or print current or past-year PDFs of 940 (Schedule A) directly from TaxFormFinder. You can print other Federal tax forms here.
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| Form Code | Form Name |
|---|---|
| 940 (Schedule R) | Allocation Schedule for Aggregate Form 940 Filers |
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Form Sources:
The Internal Revenue Service usually releases income tax forms for the current tax year between October and January, although changes to some forms can come even later. We last updated Federal 940 (Schedule A) from the Internal Revenue Service in January 2024.
940 (Schedule A) is a Federal Corporate Income Tax form. States often have dozens of even hundreds of various tax credits, which, unlike deductions, provide a dollar-for-dollar reduction of tax liability. Some common tax credits apply to many taxpayers, while others only apply to extremely specific situations. In most cases, you will have to provide evidence to show that you are eligible for the tax credit, and calculate the amount of the credit to which you are entitled.
About the Corporate Income Tax
The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.
Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).
Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.
Historical Past-Year Versions of Federal 940 (Schedule A)
We have a total of thirteen past-year versions of 940 (Schedule A) in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
2023 940 (Schedule A)
2023 Schedule A (Form 940)
2022 940 (Schedule A)
2022 Schedule A (Form 940)
2021 940 (Schedule A)
2021 Schedule A (Form 940)
2020 940 (Schedule A)
2020 Schedule A (Form 940)
2019 940 (Schedule A)
2019 Schedule A (Form 940)
2018 940 (Schedule A)
2018 Schedule A (Form 940)
2017 940 (Schedule A)
2017 Schedule A (Form 940)
2016 940 (Schedule A)
2016 Form 940 (Schedule A)
2015 940 (Schedule A)
2015 Form 940 (Schedule A)
2014 940 (Schedule A)
2014 Form 940 (Schedule A)
2013 940 (Schedule A)
2013 Form 940 (Schedule A)
2012 940 (Schedule A)
2012 Form 940 (Schedule A)
2011 940 (Schedule A)
2011 Form 940 (Schedule A)
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