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  • 2015 Form 940 (schedule A). Multi-state Employer And Credit Reduction Information - Irs

Get 2015 Form 940 (schedule A). Multi-state Employer And Credit Reduction Information - Irs

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2022 FUTA Credit Reductions Employers in California, Connecticut, Illinois, and New York are affected by the 2022 FUTA credit reduction. Employers in the US Virgin Islands will be assessed a general FUTA credit reduction of 3.6% on wages paid to employees for work in the territory.

Form 940 Schedule A - Explained Employers use Schedule A (Form 940) when required to pay state unemployment tax in more than one state, or if the paid wages in any state are subject to credit reduction. This form must be attached to the Form 940 when filed.

Schedule A (Form 940), Multi-State Employer and Credit Reduction Information. Use Schedule A (Form 940) to figure your annual Federal Unemployment Tax Act (FUTA) tax for states that have a credit reduction on wages that are subject to the unemployment compensation laws.

Form 940, Schedule A Reflects Credit Reductions The additional FUTA tax must be deposited by the due date of the 2022 federal Form 940, which is January 31, 2023. The 2022 Schedule A contains the official list of credit reduction states, and the credit reduction total from Schedule A is reported on Form 940.

Because California is subject to the credit reduction, the FUTA tax owed per employee is $63 ($7,000 x 0.9%). This is an increase over the normal FUTA payment of $42 for each employee who earns $7,000 or more annually.

These states already have a credit reduction of 0.3% for 2022 and may face a credit reduction of 0.6% for 2023: California, Connecticut, Illinois, and New York. The U.S. Virgin Islands also faces a potential credit reduction of 4.8%. The determination will be made after November 10, 2023.

Generally, federal law provides employers with a 5.4 percent FUTA tax credit toward the 6.0 percent regular tax when they file their Employer's Annual Federal Unemployment (FUTA) Tax Return (Form 940). However, this credit will be reduced by 0.3 percent to 5.1 percent for the 2022 tax year.

For the 2022 tax year, the Form 940 credit reduction states are California, Connecticut, Illinois, and New York. This means that if you paid wages that are subject to this state's unemployment compensation laws, you can apply a credit reduction of 0.3%.

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232
Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232