Hello,

I am processing year end 940 tax reports and payments. The calculation is incorrect. The calculator isn’t .06, it is .006 (as per the federal 940 reporting form) so the software is incorrect. When I try to put 0.006 in the tax rate on the company tax setup screen, it calculates the tax as zero. Please advise.

Mike

The FUTA tax applies to the first $7,000 you paid to each employee as wages during the year. Please check if the FUTA has reached the up limit.

Note:
IRS releases Form 940 in Dec each year. ezPaycheck estimates FUTA based on your settings and the current IRS guide. When you make FUTA deposit, please use the value from the tax form if they are different.

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