2011 Form 940 Reflects Expiration Of FUTA Surtax; Identifies Credit Reduction States

Abstract

The IRS has released Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, and accompanying schedules, for 2011. Form 940 for 2011 reflects the mid-year expiration of the 0.2% FUTA surtax. Employers that pay their state unemployment tax timely and in full receive a 5.4% credit. However, the credit is reduced when a state has outstanding federal loans for two consecutive Januarys.