Reminder on Your Form 940!
Jan 19, 2012
Several farm states including Illinois and Minnesota will not be able to claim the full 5.4% credit when filing their form 940 Federal Unemployment tax return this year. This is due to these states not yet repaying the federal government the funds they borrowed to make state unemployment payments over the last few years.
IRS Headliner Volume 317 has the details on the states and the amount of reduction in the credit. The painful part is that you also will have to fill out Schedule A as part of the return instead of taking the simple 5.4% credit on the front page of form 940.