Tag Archives: Schedule A (form 940)

FUTA Credit Reduction

Now you know what a FUTA credit is.  When employer pays unemployment taxes to the IRS and to one or more state governments, it’s double billing.  The IRS gives credit for the State tax paid and chops off a chunk owed to the feds. That nice FUTA credit can be reduced, however, depending on what State we’re dealing with.  It’s called a FUTA credit reduction.  Yes, that nice FUTA credit… Read Article →