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Prepare forms 940, 941, 943, 944, and 945

Form 940 and FUTA exempt wages

Some employee wages are exempt from Federal Unemployment Tax Act (FUTA tax) because the wages are not included in the definition of wages or the services are not included in the definition of employment. Wages exempt from FUTA tax may include but are not limited to the following:
  • Dependent care.
  • Fringe benefits.
  • Group term life insurance.
  • Retirement/Pension.
  • Other.
To learn more about FUTA exempt wages, go to Federal Unemployment Tax.
To populate the Payments exempt from FUTA tax section of the 940 form, you'll need to set up the proper taxability of payroll items.
  1. Select
    Setup
    , then
    Payroll items
    .
  2. Select the
    Main
     tab.
  3. Edit the FUTA exempt payroll item.
  4. In the Taxability section choose from the
    FUTA exempt payments
     dropdown list.
  5. Select
    Enter
     to save the payroll item.
  6. Repeat these steps for each FUTA exempt payroll item as needed.

This article applies to:

  • Product: Accounting CS
  • Subject: Payroll tax forms,Payroll checks

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