Page 277 - Essentials of Payroll: Management and Accounting

ESSENTIALS of Payr oll: Management and Accounting
15. Balance due (Part II, Line 9). Subtract the total amount of FUTA
taxes already deposited from the total amount of the tax to arrive
at the net liability. If the amount due is less than $1, do not pay it.

16. Record of quarterly FUTA liability (Part III). This section should
only be completed if a company’s total annual FUTA tax exceeds
$100. If so, enter the amount of the liability for each quarter of

the year, as well as the grand total.
Form 940-EZ is significantly easier to complete, but it applies only
to a restricted number of situations, as outlined in Exhibit 10.2. Form

940-EZ is shown in Exhibit 10.4.To fill out the form, follow these steps:

1. Identification section. If the form is not preaddressed, fill in the
business address and Employer Identification Number (EIN). If
there is no EIN,apply for one with Form SS-4.If no EIN has been
received from the government by the time the form is due to be
filed, print “Applied for” and the date of application in this area.

2. Amount of contributions paid. List the total amount of contribu-
tions made to the unemployment fund of the state in which the
company does business.

3. State and identification number. Enter the name of the state where
the company does business, as well as the identification number
assigned to the company by the state.

4. Total payments (Part I, Line 1). Enter the total gross wages paid
during the calendar year to employees, including wages not eli-
gible for the FUTA tax. Total gross wages should include com-

missions, bonuses, 401k plan contributions, the fair value of
goods paid, and vacation and sick pay.
5. Exempt payments (Part I,Line 2). Include all wages that are exempt

from the FUTA tax. Many of these exemptions were noted earlier

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