Schedule A (Form 940) for 2010:

Multi-State Employer and Credit Reduction Information

Department of the Treasury — Internal Revenue Service

860310

OMB No. 1545-0028

Employer identification number (EIN) —

Name (not your trade name)

About this schedule:

• You must fill out Schedule A (Form 940) if you were required to pay your state unemployment tax in more than one state or if you 

 paid wages in any state that is subject to credit reduction. 

• File Schedule A (Form 940) as an attachment to your Form 940.

For more information, read the Instructions for Schedule A (Form 940) on the back.

Part 1: Fill out this part if you were required to pay state unemployment taxes in more than one state (including the 

 District of Columbia, Puerto Rico, and the U.S. Virgin Islands). If any states do NOT apply to you, leave them 

 blank.

1 Check the box for every state in which you were required to pay state unemployment tax this year. For a list of state names and

their abbreviations, see the Instructions for Schedule A (Form 940).

AK

AL

AR

AZ

CA

CO

CT

DC

DE

FL

GA

HI

IA

ID

IL

IN

KS

KY

LA

MA

MD

MI

MN

MO

ME

MS

MT

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

Part 2: Fill out this part to tell us about wages you paid in any state (including the District of Columbia, Puerto Rico, and the 

 U.S. Virgin Islands) that is subject to credit reduction. If any lines do NOT apply, leave them blank.

2 If you paid wages in any of these states...

2a–b Indiana. Total taxable FUTA 

wages paid in IN . . . . . 2a . × .003 = line 2b 2b .

2c–d Michigan. Total taxable FUTA 

wages paid in MI . . . . . 2c . × .006 = line 2d 2d .

2e–f South Carolina. Total taxable

FUTA wages paid in SC . . . 2e . × .003 = line 2f 2f .

Do not complete lines 2g-2h through 2i-2j for 2010

2g–h [Name of State] Total taxable

FUTA wages paid in [state] . . 2g . × .00x = line 2h 2h .

2i–j [Name of State] Total taxable

FUTA wages paid in [state] . . 2i . × .00x = line 2j 2j .

3 Total credit reduction (Lines 2b + 2d + 2f = line 3) . . . . . . . . . . . . . . 3 .

Enter the amount from line 3 onto line 11 of Form 940.

For Privacy Act and Paperwork Reduction Act Notice, see back of Form 940-V. Cat. No. 16997C Schedule A (Form 940) 2010
Version A, Cycle 4

DRAFT AS OF 

November 30, 2010

Instructions for Schedule A (Form 940) for 2010: 860410

Multi-State Employer and Credit Reduction Information

Specific Instructions: Completing Schedule A (Form 940)

Part 1: Fill out this part if you were required to pay 

 state unemployment taxes in more than one 

state (including the District of Columbia, 

Puerto Rico, and the U.S. Virgin Islands).

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.

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 

listing of states and contact information, see page 12 of the 

2010 Instructions for Form 940.

For ease of reference, here is a list of the states and their 

2-letter postal abbreviations.

State

Postal 

Abbreviation

Alabama AL 

Alaska AK

Arizona AZ

Arkansas AR

California CA

Colorado CO

Connecticut CT

Delaware DE

District of Columbia DC

Florida FL

Georgia GA

Hawaii HI

Idaho ID

Illinois IL

Indiana IN

Iowa IA

Kansas KS

Kentucky KY

Louisiana LA

Maine ME

Maryland MD

Massachusetts MA

Michigan MI

Minnesota MN

Mississippi MS

Missouri MO

State

Postal 

Abbreviation

Montana MT

Nebraska NE

Nevada NV

New Hampshire NH

New Jersey NJ

New Mexico NM

New York NY

North Carolina NC

North Dakota ND

Ohio OH

Oklahoma OK

Oregon OR

Pennsylvania PA

Puerto Rico PR

Rhode Island RI

South Carolina SC

South Dakota SD

Tennessee TN

Texas TX

U.S. Virgin Islands VI

Utah UT

Vermont VT

Virginia VA

Washington WA

West Virginia WV

Wisconsin WI

Wyoming WY

Part 2: Fill out this part to tell us about wages you paid 

in any state (including the District of Columbia, 

Puerto Rico, and the U.S. Virgin Islands) that is 

subject to credit reduction.

2. You are subject to credit reduction if you paid wages in 

any state listed.

If you paid wages in any states that are subject to credit 

reduction, find the lines where the states are listed.

In the first box, enter the total taxable FUTA wages that you 

paid in that state. (Note that the FUTA wage base for all 

states is $7,000.) Do not use your state unemployment 

wages here.

Then multiply the total taxable FUTA wages by the number 

shown.

Enter your answer in the box at the end of the line.

3. Total credit reduction

To calculate the total credit reduction,

line 2b 

line 2d 

+ line 2f 

line 3

Then enter the amount from line 3 onto line 11 of Form 940.

Example:

You paid $20,000 in wages to each of 3 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 fill 

out Part 2 of Schedule A (Form 940).

Total payments to all employees subject to unemployment 

insurance in State A . . . . . . . $60,000

Payments exempt from FUTA tax . . . . . $0

Total payments made to each employee in 

excess of $7,000 . . . . . . . . $39,000

Total taxable FUTA wages you paid in State A listed on line 2a-b 

(3 × $7,000) . . . . . . . . . $21,000

Credit reduction rate for State A . . . . . .003

Total credit reduction (line 2b) . . . . . . $63

Caution. Do not include on line 2a 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 on line 3 and then enter that 

amount on line 11 of Form 940.

Attach Schedule A (Form 940) to Form 940 when you file 

your return.

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