860312
Schedule A (Form 940) for 2021:
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 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              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)2021   

                                                                                                                             860412
Instructions for Schedule A (Form 940) for 2021:
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             Taxable Wages box.
Islands) in which you had to pay state unemployment taxes          Enter the reduction rate and then multiply the total FUTA taxable 
this year, even 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        Enter your total in the Credit Reduction box at the end of the 
number for your business. If you don’t have an unemployment        line.
account in a state in which you paid wages, contact the state 
unemployment agency to receive one. For a list of state            Step 3. Total credit reduction
unemployment agencies, visit the U.S. Department of Labor’s        To calculate the total credit reduction, add up all of the Credit 
website at https://oui.doleta.gov/unemploy/agencies.asp.           Reduction boxes and enter the amount in the Total Credit 
The table below provides the two-letter postal abbreviations       Reduction box.
used on Schedule A.                                                Then enter the total credit reduction on Form 940, line 11.
                     Postal                           Postal 
State                Abbreviation State               Abbreviation Example 1
                                                                   You paid $20,000 in wages to each of three employees in State 
Alabama               AL          Montana               MT         A. State A is subject to credit reduction at a rate of 0.033 (3.3%). 
Alaska                AK          Nebraska              NE         Because you paid wages in a state that is subject to credit 
Arizona               AZ          Nevada                NV         reduction, you must complete Schedule A and file it with Form 
Arkansas              AR          New Hampshire         NH         940.
California            CA          New Jersey            NJ         Total payments to all employees in State A    . . .     . . .  $60,000
Colorado              CO          New Mexico            NM         Payments exempt from FUTA tax                                                          
Connecticut           CT          New York              NY         (see the Instructions for Form 940)  . . .    . . .     . . .  .                        $0
Delaware              DE          North Carolina        NC         Total payments made to each employee in                                         
District of Columbia  DC          North Dakota          ND         excess of $7,000  (3 x ($20,000 - $7,000))  . . . .     . . .  $39,000
Florida               FL          Ohio                  OH         Total FUTA taxable wages you paid in State A entered in 
Georgia               GA          Oklahoma              OK         the FUTA Taxable Wages box ($60,000 - $0 - $39,000)  .    . .  $21,000
Hawaii                HI          Oregon                OR         Credit reduction rate for State A  . . . .    . . .     . . .   0.033
Idaho                 ID          Pennsylvania          PA         Total credit reduction for State A ($21,000 x 0.033)  . . . .  $693.00
Illinois              IL          Rhode Island          RI
Indiana               IN          South Carolina        SC                  Don’t include in the FUTA Taxable Wages box wages 
Iowa                  IA          South Dakota          SD                  in excess of the $7,000 wage base for each employee 
Kansas                KS          Tennessee             TN         ▲!       subject to state unemployment insurance in the credit 
                                                                   CAUTION  reduction state. The credit reduction applies only 
Kentucky              KY          Texas                 TX         to FUTA taxable wages that were also subject to state 
                                                                   unemployment tax.
Louisiana             LA          Utah                  UT
Maine                 ME          Vermont               VT         In this case, you would write $693.00 in the Total Credit 
Maryland              MD          Virginia              VA         Reduction box and then enter that amount on Form 940, line 11.
Massachusetts         MA          Washington            WA         Example 2
Michigan              MI          West Virginia         WV
Minnesota             MN          Wisconsin             WI         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 
Mississippi           MS          Wyoming               WY         B (not subject to credit reduction) in January and then 
Missouri              MO          Puerto Rico           PR         transferred to State C (subject to credit reduction) on February 
                                  U.S. Virgin Islands   VI         1. Because you paid wages in more than one state, you must 
Credit reduction state. For 2021, the U.S. Virgin Islands (USVI)   complete Schedule A and file it with Form 940.
is the only credit reduction state. The credit reduction rate is   The total payments in State B that aren’t exempt from FUTA tax 
0.033 (3.3%).                                                      are $4,000. Since this payment to Mary doesn’t exceed the 
Step 2. You’re subject to credit reduction if you paid FUTA        $7,000 FUTA wage base, the total FUTA taxable wages paid in 
taxable wages that were also subject to state                      State B are $4,000. 
unemployment taxes in the USVI.                                    The total payments in State C that aren’t exempt from FUTA tax 
In the FUTA Taxable Wages box, enter the total FUTA taxable        are $44,000. However, $4,000 of FUTA taxable wages was paid 
wages that you paid in the USVI. (The FUTA wage base for all       in State B with respect to Mary. Therefore, the total FUTA 
states is $7,000.) However, don’t include in the FUTA Taxable      taxable wages with respect to Mary in State C are $3,000 
Wages box wages that were excluded from state unemployment         ($7,000 (FUTA wage base) - $4,000 (total FUTA taxable wages 
tax. For example, if you paid $5,000 in FUTA taxable wages in      paid in State B)). Enter $3,000 in the FUTA Taxable Wages box, 
the USVI but $1,000 of those wages were excluded from state        multiply it by the Reduction Rate, and then enter the result in the 
unemployment tax, report $4,000 in the FUTA Taxable Wages          Credit Reduction box.
box. 
                                                                   Attach Schedule A to Form 940 when you file your return.

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