860312
Schedule A (Form 940) for 2023:
Multi-State Employer and Credit Reduction Information                                                                           OMB No. 1545-0028
Department of the Treasury — Internal Revenue Service

                                                                                                                                See the 
Employer identification number (EIN)                   —                                                                        instructions on 
                                                                                                                                page 2. File this 
                                                                                                                                schedule with 
Name (not your trade name)                                                                                                      Form 940.

Place an “X” in the box of EVERY state in which you had to pay state unemployment tax this year. For each state with a 
credit reduction rate greater than zero, enter the FUTA taxable wages, multiply 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              FUTA                 Reduction     Credit Reduction     Postal             FUTA                   Reduction Credit Reduction     
Abbreviation    Taxable Wages        Rate                                   Abbreviation     Taxable Wages         Rate
    AK                     .                                     .            NC                          .                              .
    AL                     .                                     .            ND                          .                              .
    AR                     .                                     .            NE                          .                              .
    AZ                     .                                     .            NH                          .                              .
    CA                     .                                     .            NJ                          .                              .
    CO                     .                                     .            NM                          .                              .
    CT                     .                                     .            NV                          .                              .
    DC                     .                                     .            NY                          .                              .
    DE                     .                                     .            OH                          .                              .
    FL                     .                                     .            OK                          .                              .
    GA                     .                                     .            OR                          .                              .
    HI                     .                                     .            PA                          .                              .
    IA                     .                                     .            RI                          .                              .
    ID                     .                                     .            SC                          .                              .
    IL                     .                                     .            SD                          .                              .
    IN                     .                                     .            TN                          .                              .
    KS                     .                                     .            TX                          .                              .
    KY                     .                                     .            UT                          .                              .
    LA                     .                                     .            VA                          .                              .
    MA                     .                                     .            VT                          .                              .
    MD                     .                                     .            WA                          .                              .
    ME                     .                                     .            WI                          .                              .
    MI                     .                                     .            WV                          .                              .
    MN                     .                                     .            WY                          .                              .
    MO                     .                                     .            PR                          .                              .
    MS                     .                                     .            VI                          .                              .
    MT                     .                                     .
    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)2023   

                                                                                                                                 860412
Instructions for Schedule A (Form 940) for 2023:
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         Note: Don’t enter your state unemployment wages in the FUTA 
District of Columbia, Puerto Rico, and the U.S. Virgin Islands) in    Taxable Wages box.
which you had to pay state unemployment taxes this year, even         Enter the reduction rate and then multiply the total FUTA taxable 
if the state’s credit reduction rate is zero.                         wages by the reduction rate. 
Note: Make sure that you have applied for a state reporting number    Enter your total in the Credit Reduction box at the end of the line.
for your business. If you don’t have an unemployment account in a 
state in which you paid wages, contact the state unemployment         Step 3. Total credit reduction
agency to receive one. For a list of state unemployment agencies,     To calculate the total credit reduction, add up all of theCredit 
visit the U.S. Department of Labor’s website at                       Reduction boxes and enter the amount in the Total Credit 
https://oui.doleta.gov/unemploy/agencies.asp.                         Reduction box.
The table below provides the two-letter postal abbreviations used     Then enter the total credit reduction on Form 940, line 11.
on Schedule A.
                     Postal                              Postal       Example 1
State                Abbreviation    State               Abbreviation 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 0.006 (0.6%). 
Alabama                 AL           Montana             MT           Because you paid wages in a state that is subject to credit 
Alaska                  AK           Nebraska            NE           reduction, you must complete Schedule A and file it with Form 940.
Arizona                 AZ           Nevada              NV           Total payments to all employees in State A    . .   .    . . .  $60,000
Arkansas                AR           New Hampshire       NH           Payments exempt from FUTA tax                                                          
California              CA           New Jersey          NJ           (see the Instructions for Form 940)  . . .    . .   .    . . .  .                       $0
Colorado                CO           New Mexico          NM           Total payments made to each employee in                                         
Connecticut             CT           New York            NY           excess of $7,000  (3 x ($20,000 - $7,000))  . . .   .    . . .  $39,000
Delaware                DE           North Carolina      NC
                                                                      Total FUTA taxable wages you paid in State A entered in 
District of Columbia    DC           North Dakota        ND           the FUTA Taxable Wages box ($60,000 - $0 - $39,000)  .     . .  $21,000
Florida                 FL           Ohio                OH           Credit reduction rate for State A  . . . .    . .   .    . . .    0.006
Georgia                 GA           Oklahoma            OK           Total credit reduction for State A ($21,000 x 0.006)   . . . .  $126.00
Hawaii                  HI           Oregon              OR
Idaho                   ID           Pennsylvania        PA                    Don’t include in the FUTA Taxable Wages box wages in 
Illinois                IL           Rhode Island        RI                    excess of the $7,000 wage base for each employee 
Indiana                 IN           South Carolina      SC           ▲!       subject to state unemployment insurance in the credit 
                                                                      CAUTION  reduction state. The credit reduction applies only to  
Iowa                    IA           South Dakota        SD           FUTA taxable wages that were also subject to state unemployment 
Kansas                  KS           Tennessee           TN           tax.
Kentucky                KY           Texas               TX
                                                                      In this case, you would enter $126.00 in the Total Credit Reduction 
Louisiana               LA           Utah                UT           box and then enter that amount on Form 940, line 11.
Maine                   ME           Vermont             VT           Example 2
Maryland                MD           Virginia            VA           You paid $48,000 ($4,000 a month) in wages to Mary Smith and no 
Massachusetts           MA           Washington          WA           payments were exempt from FUTA tax. Mary worked in State B (not 
Michigan                MI           West Virginia       WV           subject to credit reduction) in January and then transferred to State 
Minnesota               MN           Wisconsin           WI           C (subject to credit reduction) on February 1. Because you paid 
Mississippi             MS           Wyoming             WY           wages in more than one state, you must complete Schedule A and 
Missouri                MO           Puerto Rico         PR           file it with Form 940.
                                     U.S. Virgin Islands VI           The total payments in State B that aren’t exempt from FUTA tax are 
                                                                      $4,000. Because this payment to Mary doesn’t exceed the $7,000 
Credit reduction states for 2023. The credit reduction rate for       FUTA wage base, the total FUTA taxable wages paid in State B are 
California and New York is 0.006 (0.6%). The credit reduction rate    $4,000. 
for the U.S. Virgin Islands is 0.039 (3.9%).
                                                                      The total payments in State C that aren’t exempt from FUTA tax are 
Step 2. You’re subject to credit reduction if you paid FUTA           $44,000. However, $4,000 of FUTA taxable wages was paid in State 
taxable wages that were also subject to state unemployment            B with respect to Mary. Therefore, the total FUTA taxable wages 
taxes in any state listed that has a credit reduction rate greater    with respect to Mary in State C are $3,000 ($7,000 (FUTA wage 
than zero.                                                            base) - $4,000 (total FUTA taxable wages paid in State B)). Enter 
In the FUTA Taxable Wages box, enter the total FUTA taxable           $3,000 in the FUTA Taxable Wages box, multiply it by the reduction 
wages that you paid in any state that is subject to credit reduction. rate, and then enter the result in the Credit Reduction box.
(The FUTA wage base for all states is $7,000.) However, don’t 
include in the FUTA Taxable Wages box wages that were excluded        Attach Schedule A to Form 940 when you file your return.
from state unemployment tax. For example, if you paid $5,000 in 
FUTA taxable wages in a credit reduction state but $1,000 of those 
wages was excluded from state unemployment tax, report $4,000 in 
the FUTA Taxable Wages box. 

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