Schedule A (Form 940) for 2019:

Multi-State Employer and Credit Reduction Information

Department of the Treasury — Internal Revenue Service

860312

OMB No. 1545-0028

Employer identification number (EIN) —

Name (not your trade name)

See the 

instructions on 

page 2. File this 

schedule with 

Form 940.

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 

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. Add all amounts shown in the Credit Reduction boxes. Enter the total 

here and on Form 940, line 11 . . . . . . . . . . . . . . . . . . . . . .

For Privacy Act and Paperwork Reduction Act Notice, see the Instructions for Form 940. Cat. No. 16997C 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: 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.

The table below provides the two-letter postal abbreviations 

used on Schedule A.

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

Rhode Island RI

South Carolina SC

South Dakota SD

Tennessee TN

Texas TX

Utah UT

Vermont VT

Virginia VA

Washington WA

West Virginia WV

Wisconsin WI

Wyoming WY

Puerto Rico PR

U.S. Virgin Islands 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. 

Note: Don’t enter your state unemployment wages in the FUTA 

Taxable Wages box.

Enter the reduction rate and then multiply the total FUTA taxable 

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 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 . . . . . . $60,000

Payments exempt from FUTA tax 

(see the Instructions for Form 940) . . . . . . . . . . $0

Total payments made to each employee in 

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

Total FUTA taxable 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 . . . . . . . . . 0.027

Total credit reduction for State A ($21,000 x 0.027) . . . . $567.00

▲!

CAUTION

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 

reduction state. The credit reduction applies only 

to FUTA taxable wages that were also subject to state 

unemployment tax.

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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