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

Schedule A (Form 940) for 2019:

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 had to pay state unemployment tax this year. For the U.S. Virgin Islands,
enter the FUTA taxable wages and the reduction rate (see page 2). Multiply the FUTA taxable wages 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

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Reduction
Rate

Credit Reduction

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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

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Reduction
Rate

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 Instructions for Form 940.

Cat. No. 16997C

Credit Reduction

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Schedule A (Form 940) 2019

Instructions for Schedule A (Form 940) for 2019:

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

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

Credit reduction state. For 2019, the U.S. Virgin Islands (USVI)
is the only credit reduction state. The credit reduction rate is
0.027 (2.7%).
Step 2. You’re subject to credit reduction if you paid FUTA
taxable wages that were also subject to state
unemployment taxes in the USVI.
In the FUTA Taxable Wages box, enter the total FUTA taxable
wages that you paid in the USVI. (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
the USVI but $1,000 of those wages were excluded from state
unemployment tax, report $4,000 in the FUTA Taxable Wages
box.

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 0.027
(2.7%). 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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2

$0

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. $39,000

Total FUTA taxable wages you paid in State A entered in
the FUTA Taxable Wages box ($60,000 - $0 - $39,000) .
Credit reduction rate for State A

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. $21,000

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Total credit reduction for State A ($21,000 x 0.027) .

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. $567.00

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0.027

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.

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In this case, you would write $567.00 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. Since 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.

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