Are 940 Schedule Reduction Rates 2017-2023

Instructions and Help about Are 940 Schedule Reduction Rates

Hi welcome to easy payroll guide my name is Karen Hutchinson and in this video we're going to be completing the IRS form 940 this is the federal unemployment tax that is owed at the end of each year it's also known as futa which is the federal unemployment tax act we are going to complete the IRS 940 using a fictitious example this example kind of piggybacks off of the example that I did in my earlier video at the beginning of this page as we were calculating the food a liability we have three employees in this business and the employees are all paid wages that are taxable for food a' employee a is a resident of Maryland and has been paid a total wage of $16,000 employee B is a resident of Maryland as well and has been paid wages of $13,000 an employee's C is a resident of Delaware and has been paid total wages of $8,000 this is a total of 37 thousand dollars paid and wages I wanted to give you an example of a multi-state 940 as well so that's why I have one employee here who is a resident of Delaware so this means that the employer would be playing state unemployment taxes to Maryland and to Delaware for its respective employees so what this means is that I owe as the employer food or wages on the first twenty one thousand dollars because each of my employees have met the minimum requirement of or the maximum requirement of seven thousand so Fuda is paid on the first seven thousand dollars in wages for each employee since they all made over seven thousand dollars I'm responsible for paying the full amount of food a wage for each employee so that's twenty one...