Question

e end of each year, the available 2019 rates were used for FUTA and SUTA.

Note: Since the 2019 Form 940 and Schedule A were not available at print date, the 2018 version is used. The net FUTA rate of 0.6% is used in the text.

As the accountant for Runson Moving Company, you are preparing the company's annual return, Form 940 and Schedule A. Use the following information to complete Form 940 and Schedule A.

The net FUTA tax liability for each quarter of 20-- was as follows: 1st, $220.40; 2nd, $106.20; 3rd, $97.70; and 4th, $70.94 plus the credit reduction.

Since the net FUTA tax liability did not exceed $500 until the 4th quarter, the company was required to make its first deposit of FUTA taxes on January 31 of the next year. Assume that the electronic payment was made on time.

a.  One of the employees performs all of his duties in another state-Arizona.

b.  Total payments made to employees during calendar year 20--

California	$103,880
Arizona	17,380
Total	$121,260

c.  Employer contributions in California into employees' 401(k) retirement plan: $3,540.

d.  Payments made to employees in excess of $7,000: $35,180 ($10,380 from Arizona and $24,800 from California).

e.  Form is to be signed by Mickey Vixon, Vice President, and dated 1/31/--.

f.  Phone number—(219) 555-8310.