TaxBandits Knowledge Base

What is part 3 in Form 940 represent?

The part 3 in Form 940 requires you to specify whether:

• If all your total taxable FUTA wages (Line 7) were exempt from state unemployment tax, multiply the amount in Line 7 by 0.054, and enter it as Line 9.
• Line 10 must be completed if only some of the taxable FUTA wages paid were exempt from state unemployment tax or if you paid any state unemployment tax late.
• If you completed Schedule A of Form 940 for wages paid in a credit reduction state, enter the total from Schedule A on Line 11.