Form Schedule A (Form 9 Schedule A (Form 9 Multi-State Employer and Credit Reduction Information

Schedule A (Form 940) for 2012:

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.

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Employer identification number (EIN)
Name (not your trade name)

Place an “X” in the box of EVERY state in which you were required to pay state unemployment tax this year. For
states with a credit reduction rate greater than zero, enter the FUTA taxable wages, multiply by the reduction
rate, and then enter the credit reduction amount for that state. If any states do not 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

FUTA
Taxable Wages

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Reduction
Rate

Credit Reduction

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Postal
Abbreviation

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

FUTA
Taxable Wages

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MT
Total Credit Reduction. Add all amounts shown in the Credit Reduction boxes. Enter the total
here and on Form 940, line 11
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For Privacy Act and Paperwork Reduction Act Notice, see the last page of Form 940.

Cat. No. 16997C

Reduction
Rate

Credit Reduction

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Schedule A (Form 940) 2012

Instructions for Schedule A (Form 940) for 2012:

860412

Multi-State Employer and Credit Reduction Information
For more information on completing Schedule A, see the
Frequently Asked Questions, available at www.irs.gov/form940.
Specific Instructions: Completing Schedule A
Step 1. Check the box for every state (including the District
of Columbia, Puerto Rico, and the U.S. Virgin Islands) in
which you were required to pay state unemployment taxes
this year even if the state's credit reduction rate is zero.
Note. Make sure that you have applied for a state
unemployment number for your business. If you do not have an
unemployment account number from a state in which you paid
wages, contact the state office to receive one. For a list of state
unemployment agencies, visit the U.S. Department of Labor's
website at www.workforcesecurity.doleta.gov/unemploy/
agencies.asp.
The table below provides the two-letter postal abbreviations
used on Schedule A.
State

Postal
Abbreviation

State

Postal
Abbreviation

Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia

AL
AK
AZ
AR
CA
CO
CT
DE
DC

Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota

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

Step 2. You are 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.
If you paid FUTA taxable wages that were also subject to state
unemployment taxes in any states that are subject to credit
reduction, find the lines for each state.
In the FUTA Taxable Wages box, enter the total FUTA taxable
wages that you paid in that state. (The FUTA wage base for all
states is $7,000.) However, do not include in the FUTA Taxable
Wages box wages that were excluded from state unemployment
tax.
Page

2

Note. Do not enter your state unemployment wages in the FUTA
Taxable Wages box.
Then multiply the total taxable FUTA wages by the reduction
rate.
Enter your total in the Credit Reduction box at the end of the
line.
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 .003 (.3%). 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

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. $60,000

Payments exempt from FUTA tax
(see the Instructions for Form 940) .

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Total payments made to each employee in
excess of $7,000 (3 x ($20,000 - $7,000)) .

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. $39,000

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$0

Total taxable FUTA 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

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. .003

Total credit reduction for State A ($21,000 x .003)

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$63

Caution. Do not include in the FUTA Taxable Wages box wages in
excess of the $7,000 wage base for each employee subject to
unemployment insurance in the credit reduction state. The credit
reduction applies only to taxable FUTA wages.
In this case, you would write $63.00 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 Employee A and no
payments were exempt from FUTA tax. Employee A 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 are not exempt from FUTA tax are
$4,000. Since this payment to Employee A does not exceed the $7,000
FUTA wage base, the total taxable FUTA wages paid in State B are
$4,000.
The total payments in State C that are not exempt from FUTA tax are
$44,000. However, $4,000 of FUTA taxable wages was paid in State B
with respect to Employee A. Therefore, the total taxable FUTA wages
with respect to Employee A in State C is $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.