The information given below was taken from the payroll records of Clegg Company (Oregon employer) for 20--. Use the information to complete the partially illustrated Form 940 shown below. Assume that all taxes were deposited timely.
Total remuneration: $155,900
Included in the total remuneration is $3,000 of employer's contributions to the employees' 401(k) plans.
Remuneration in excess of $7,000: $66,670
Taxable remuneration by quarters:
1st quarter $43,700
2nd quarter $24,940
3rd quarter $14,360
4th quarter $3,230
If required, round your answers to two decimal places.
Part 2: Determine your FUTA tax before adjustments for 20--. If any line does NOT apply, leave it blank.
3 Total payments to all employees 3
4 Payments exempt from FUTA tax 4 Select:
5 Total of payments made to each employee in excess of $7,000 5
6 Subtotal (line 4 + line 5 = line 6) 6
7 Total taxable FUTA wages (line 3 - line 6 = line 7)
7 8 FUTA tax before adjustments (line 7 x .006 = line 8) 8
Part 5: Report your FUTA tax liability by quarter only if line 12 is more than $500. If not, go to Part 6.
16 Report the amount of your FUTA tax liability for each quarter; do NOT enter the amount you deposited. If you had no liability for a quarter, leave the line blank.
16a 1st quarter (January 1 - March 31) 16a
16b 2nd quarter (April 1 - June 30) 16b
16c 3rd quarter (July 1 - September 30) 16c
16d 4th quarter (October 1 - December 31) 16d
17 Total tax liability for the year (lines 16a + 16b + 16c + 16d = line 17) 17 Total must equal line 12.