Tech Tip: How Can I See the FUTA Due to Credit Reduction for Each State?

We have payroll transactions on credit reduction states. What report should I generate to see the federal unemployment tax (FUTA) due to credit reduction for each state?

Generate Form 940 from Tax Forms.

The value in Form 940 ► Line 8 is the federal unemployment tax using the base rate of 0.60%. The federal unemployment tax due to credit reduction is displayed in Form 940 ► Line 11 and the breakdown per state is in Schedule A (page 3).

Form 940 ► Line 12 shows the total federal unemployment tax. This should match the total FUTA tax calculated in AccountMate for the year. Run the Check Register Report or YTD Tax Withholdings Report for cross-reference. There may be a rounding difference of 1 or 2 cents.