Get Answers Support Tax Filings & Payments 94x Forms Form 940 What is Part 2 in Form 940 represent? Last modified 4/5/2023 3:02:49 AM EST In part 2 of Form 940, you'll calculate your FUTA tax before adjustment. You must enter the following in order to finish the section: The total amount paid to all staff (Line 3) The amount of payments exempt from FUTA tax (fringe benefits, group-term life insurance premiums, retirement/pension payments, and dependent care payments) (Line 4) The total amount paid to each of your employees is greater than $7,000 (Line 5). Lines 4 and 5 should be added to get the subtotal on Line 6, which should then be subtracted from Line 3 to get the total taxable FUTA wages on Line 7. To determine your FUTA tax before adjustments on Line 8, multiply the amount on Line 7 by 0.006. Was this helpful? Yes No Related Questions What is Form 940? When is the deadline for the 940 tax Form? What is Part 1 in Form 940 represent? What is part 3 in Form 940 represent? Go to Home Page Need more help? Get in touch with our dedicated support team Contact Us (704) 684-4751 support@taxbandits.com Sign Up for a FREE TaxBandits Account! The Smart CPA Choice Register Now Already have an account? Sign in