IRS Issues Draft of 2020 Form 940’s Schedule A

A draft version of the 2020 Form 940’s unemployment tax credit-reduction schedule was released Nov. 18 by the Internal Revenue Service.

The draft of Form 940’s Schedule A, Multi-State Employer and Credit Reduction Information, reaffirmed that the U.S. Virgin Islands is to be assessed a credit reduction of 3%. The 2020 credit reduction percentage was announced Nov. 10 by the Labor Department.

Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return, is used to report annual federal unemployment tax liability.

Finalized versions of Form 940 and Schedule A are expected to be released in late November.

Draft forms and ...