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Official form guide
Form 940-SA: 940 (Schedule A)
IRS Form 940 (Schedule A) is used by employers to report additional FUTA taxes for states that are credit reduction states. Filers must complete this schedule if their state is listed as a credit reduction state for the tax year. No specific thresholds or rates are available from the official source.
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IRS Form 940-SA - 940 (Schedule A)
IRS Form 940 (Schedule A) is used by employers to report additional FUTA taxes for states that are credit reduction states. Filers must complete this schedule if their state is listed as a credit reduction state for the tax year. No specific thresholds or rates are available from the official source.
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Scan points- 1Not stated in the official source — verify on the IRS site.
- 2Not stated in the official source — verify on the IRS site.
- 3Not stated in the official source — verify on the IRS site.
- 4Not stated in the official source — verify on the IRS site.
- 5Not stated in the official source — verify on the IRS site.
Plain English
This form helps employers calculate extra federal unemployment tax owed when their state has borrowed money from the federal government and hasn't paid it back. You fill it out if your state appears on the IRS credit reduction list for the year. The form determines the additional tax on each employee's wages.
Submission Date
- Filing date: 2025-11-24 22:10:16
- Preparation window: collect IDs, supporting records, and signatures in advance.
- Final review: verify names, dates, and required fields before submission.
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What this form is for
- Use this form when your state is a credit reduction state and you need to report additional FUTA taxes.
- Do not use it when you are not subject to FUTA tax or your state is not a credit reduction state for the tax year.
- Check Form 940 instead when you are filing the main employer's annual Federal Unemployment (FUTA) tax return.
Form selector
Use this form or another form?
Filing quarterly instead of annually
FUTA taxes are annual on Form 940; quarterly deposits use Form 941 for Social Security and Medicare taxes.
✓ Check that you are reporting FUTA taxes on the correct form for the correct period.
State unemployment tax is separate
Federal FUTA tax on Schedule A is additional to state unemployment taxes; do not use Form 940 to report state tax amounts.
✓ Verify your state unemployment tax filing requirements with your state workforce agency.
Multiple states with credit reduction
If your business operates in multiple states, only include wages for states the IRS designates as credit reduction states on Schedule A.
✓ Confirm the current list of credit reduction states on IRS.gov before filing.
Schedule A (Form 940) only for credit reduction states
Deadline or filing window
Not stated in the official source — verify on the IRS site.
Checklist
What you need before filling it out
State credit reduction status
IRS notice or IRS.gov list of credit reduction states · IRS publication, Announcement of Credit Reduction States
Total wages subject to FUTA tax in credit reduction state
Payroll records showing wages paid to employees in that state · Employer payroll reports, payroll software reports
Credit reduction rate
IRS notice for the specific tax year · IRS Notice or Revenue Procedure for the year
Taxable FUTA wage base
Internal payroll records · Payroll records, Form 940 worksheets
Employer identification number (EIN)
IRS-assigned EIN · IRS Form SS-4 confirmation, previous tax returns
Schedule A completion indicator on Form 940
Completed Schedule A data · Schedule A (Form 940) lines 1 through 8
Before you submit
- 1Confirm the form year matches the tax year for which you are filing.
- 2Verify your EIN is entered exactly as shown on your IRS notice.
- 3Check that the state name is spelled correctly and matches the official list of credit reduction states.
- 4Recalculate the credit reduction amount using the correct rate from the IRS Revenue Procedure.
- 5Ensure all fields are filled legibly (if paper) or correctly in the e-file software.
- 6Attach Schedule A to Form 940 before filing.
- 7Confirm payment is submitted separately if you owe additional tax; use Form 940-V if paying by mail.
- 8Keep a copy of the completed form and any supporting worksheets for your records.
- 9File by the due date of Form 940 (usually January 31 of the following year).
How to file this form
- 1Determine if your state is listed as a credit reduction state for the tax year.
- 2Obtain the correct credit reduction rate from the IRS Revenue Procedure for that year.
- 3Complete the employer information section on Schedule A (state name, EIN, etc.).
- 4Calculate the additional FUTA tax by applying the credit reduction rate to the total FUTA taxable wages for that state.
- 5Transfer the result to the corresponding line on Form 940.
- 6Attach Schedule A to Form 940 and file both together by the due date.
- 7Pay any additional tax due using an approved payment method (e.g., EFTPS, credit card, or check with Form 940-V).
Field map
Compact field-by-field guide
Employer Info
1 items
Full legal name and Employer Identification Number.
Quarter
1 items
Select the calendar quarter this return covers.
Wages
1 items
Sum of all wages, tips, and other compensation paid to employees during the quarter.
Withholding
1 items
Total federal income tax withheld from employee paychecks.
SS & Medicare
1 items
Wages subject to Social Security tax (capped) and Medicare tax (uncapped).
Deposit
1 items
Indicate your deposit schedule: monthly, semiweekly, or next-day rule if over $100k.
Signatures
1 items
Must be signed by an authorized officer or agent of the employer.
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Fillable formOpen in Editor->No official source is available for IRS Form 940 (Schedule A). The revision date and any changes are not stated in the official source — verify on the agency site.
What changed or needs a fresh check
- Edition date — confirm the revision date on the form; not stated in the official source — verify on the agency site.
- Fee — no fee is required for filing Form 940 (Schedule A).
- Mailing address — not stated in the official source — use the address from the most recent Form 940 instructions.
- Signature — the form must be signed by an authorized officer or representative; electronic signatures may be accepted per IRS e-file rules.
Quick Facts
Downloads
After you file
- 1Retain a copy of the filed Form 940 (Schedule A) for at least four years after the due date of the return.
- 2Monitor your file for any IRS notice or correspondence regarding the credit reduction computation.
- 3If you discover an error, file an amended Form 940-X (if applicable) with a corrected Schedule A.
- 4Record the payment confirmation number if paying electronically; keep the canceled check or payment voucher if paying by mail.
- 5Check the IRS website for any updates to the credit reduction state list after filing, in case of retroactive changes.
- 6Prepare for next year's filing by noting the state's status change if it exits or enters credit reduction.
Sources
- SRCNot stated in the official source — verify on the agency site for the purpose of Form 940 (Schedule A).
- SRCNot stated in the official source — verify on the agency site for the list of credit reduction states.
- SRCNot stated in the official source — verify on the agency site for the credit reduction rate.
- SRCNot stated in the official source — verify on the agency site for the filing deadline.
- SRCNot stated in the official source — verify on the agency site for the correct mailing address.
- SRCNot stated in the official source — verify on the agency site for any specific penalties.
- SRCNot stated in the official source — verify on the agency site for the revision date of the form.
- SRCNot stated in the official source — verify on the agency site for related forms such as Form 940-X.
Common confusion points
What is a credit reduction state?
The IRS designates states that have borrowed from the federal unemployment fund and not repaid loans on time.
→ Check the annual IRS list or notice for the current tax year.
Do I need to file Schedule A if my state is not on the list?
No, only employers in credit reduction states must file Schedule A.
→ Confirm your state is not on the IRS credit reduction list for the tax year.
How do I find the credit reduction rate for my state?
The rate is published by the IRS each year for each affected state.
→ Look up the IRS announcement or Revenue Procedure for the tax year you are filing.
What if I have employees in multiple states but only one is a credit reduction state?
You must complete Schedule A only for the credit reduction state.
→ Separate wages for each state and enter only the relevant wages on Schedule A.
Is the credit reduction rate the same for all states?
No, each credit reduction state may have a different rate set by the IRS annually.
→ Verify the specific rate for your state from the current IRS notice.
Does Schedule A affect my regular Form 940 calculation?
Yes, it adds an additional tax amount for wages in credit reduction states.
→ After computing Schedule A, transfer the additional tax to Form 940, Part 2, line 8.
Can I e-file Form 940 with Schedule A?
Yes, IRS e-file supports including Schedule A with Form 940.
→ Ensure your tax software includes Schedule A and you have entered data correctly for the credit reduction state.
What if I completed Schedule A but my state was not a credit reduction state?
You may have filed incorrectly and could owe less tax or need to amend.
→ Double-check the official IRS credit reduction list for the tax year before amending.
Workflow map
Related forms and next steps
Before
Current
After
Often used with
⚠ If something goes wrong
- Form 843 — claim for refund or abatement of penalties if applicable.
Questions about IRS Form 940-SA
What is IRS Form 940-SA used for?
This form helps employers calculate extra federal unemployment tax owed when their state has borrowed money from the federal government and hasn't paid it back. You fill it out if your state appears on the IRS credit reduction list for the year. The form determines the additional tax on each employee's wages.
What is a credit reduction state?
The IRS designates states that have borrowed from the federal unemployment fund and not repaid loans on time. Check the annual IRS list or notice for the current tax year.
Do I need to file Schedule A if my state is not on the list?
No, only employers in credit reduction states must file Schedule A. Confirm your state is not on the IRS credit reduction list for the tax year.
How do I find the credit reduction rate for my state?
The rate is published by the IRS each year for each affected state. Look up the IRS announcement or Revenue Procedure for the tax year you are filing.
What if I have employees in multiple states but only one is a credit reduction state?
You must complete Schedule A only for the credit reduction state. Separate wages for each state and enter only the relevant wages on Schedule A.
Is the credit reduction rate the same for all states?
No, each credit reduction state may have a different rate set by the IRS annually. Verify the specific rate for your state from the current IRS notice.
Does Schedule A affect my regular Form 940 calculation?
Yes, it adds an additional tax amount for wages in credit reduction states. After computing Schedule A, transfer the additional tax to Form 940, Part 2, line 8.
Can I e-file Form 940 with Schedule A?
Yes, IRS e-file supports including Schedule A with Form 940. Ensure your tax software includes Schedule A and you have entered data correctly for the credit reduction state.
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