If ALL of the Taxable FUTA Wages You Paid Were Excluded From State Unemployment Tax:
Total FUTA after adjustments = (Taxable FUTA Wages * 0.006) + (Taxable FUTA Wages * 0.054)
If SOME of the Taxable FUTA Wages You Paid Were Excluded From State Unemployment Tax:
Total FUTA after adjustments = (Taxable FUTA Wages * 0.006) + Adjustments (from FUTA Line 10 Worksheet).
Notes on Adjustments FUTA Line 10 Worksheet:
- The maximum allowed FUTA credit = Taxable FUTA Wages * 0.054
- The adjustment is equal to a credit for timely state unemployment tax payments and an additional credit (calculation explained below)
- If business paid timely state unemployment tax payments that were:
-
- equal to or more than the maximum allowed FUTA credit no additional adjustments are required (Line 10 on Form 940 is left blank)
- Less than the maximum allowed FUTA credit:
-
- AND ALL state experience rates were 5.4% or more the calculation to determine the additional credit is skipped
- AND some state experience rates were less than 5.4%, the additional credit = (0.054 - the state experience rate) * Taxble state unemployment wages
-
-
- If the credit for timely state unemployment tax payments plus the additional credit is more than the maximum allowed FUTA Credit (Taxable FUTA Wages * 0.054) no additional adjustmens are required (Line 10 on Form 940 is left blank)
- If state unemployment taxes were paid late the allowable credit for paying state unemployment taxes late is eaual to 0.900 times:
- the smaller of remaining credit ((Taxable FUTA Wages * 0.54) - adjustments for additional credit) OR,
- the amount of state unemployment paid late
- The total FUTA credit equals the credit for timely state unemployment tax payments + additional credit + the allowable credit for paying state unemployment late
Comments
0 comments
Article is closed for comments.