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L
Lampin
January 8, 2023
Question

FUTA epay in credit reduction state

  • January 8, 2023
  • 1 reply
  • 0 views

Hello. I efiled the FUTA 940 form and the credit reduction amount was reported properly.

The credit reduction amount is not included in the pay liabilities tab in the payroll center.

How will I add the extra amount to the Federal 940 epayment?

Thanks!

 

    1 reply

    BigRedConsulting
    BigRedConsulting
    January 8, 2023

    Yes, that's correct. When you're in a credit reduction state, the FUTA tax accrues at the normal rate, and you must pay it at the normal rate during the year. Then when you file you'll owe more money, which is then due.

     

    This is likely because it is not always known if a state will have a credit reduction until late in the year and/or what the the credit reduction percentage will be until late in the year.

     

    L
    LampinAuthor
    January 8, 2023

    Yes. I need to know please how to add the additional amount to the

    liability e-payment. The extra $ due for the credit reduction is not included

    in the amount for the Federal 940 in the Pay Liabilities tab of the Payroll Center.

    C
    chris111
    January 11, 2024

    You should be able to click "adjust payroll liabilities" on the bottom and add the amount to epay. someone else can confirm.

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