Schedule A (Form 940) for 2011:

Multi-State Employer and Credit Reduction Information

Department of the Treasury — Internal Revenue Service

860311

OMB No. 1545-0028

Employer identification number (EIN) —

Name (not your trade name)

See Instructions 

on back. File 

this schedule 

with Form 940.

Place an “X” in the box of every state in which you were required to pay state unemployment tax this year even 

if that state's credit reduction rate was zero. 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 

FUTA 

Taxable Wages 

Reduction 

Rate

Credit Reduction 

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 . .

Postal 

Abbreviation 

FUTA 

Taxable Wages 

Reduction 

Rate

Credit Reduction 

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 . .

Total credit reduction. Enter this amount on line 11 of Form 940 . . . . . . . . . .

For Privacy Act and Paperwork Reduction Act Notice, see the last page of Form 940. Cat. No. 16997C Schedule A (Form 940) 2011
Instructions for Schedule A (Form 940) for 2011: 860411

Multi-State Employer and Credit Reduction Information

Specific Instructions: Completing Schedule A (Form 940)

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 listing of states and contact 

information, see the 2011 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

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

in any state listed that has a credit reduction rate greater 

than zero.

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

reduction, find the lines where the states are listed and fill them 

in.

In the second box, enter the total FUTA taxable 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 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 number in the total credit 

reduction box.

Then enter the total credit reduction onto line 11 of Form 940.

Example:

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 fill out 

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 (3 x ($20,000 - $7,000)) . . . . . . . $39,000

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 . . . . . . . . . . .003

Total credit reduction for State A ($21,000 x .003) . . . . . $63

Caution. Do not include on the FUTA taxable wage line 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 line 11 of Form 940.

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

return.

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