The 940 Worksheet is generated using figures from employee payroll checks when using Sage BusinessWorks V2012 and higher. These figures are also influenced by deductions and other pays. It is important to first reconcile employee and company totals. See attached document for complete information.

Note: The 'SUI Pay column on the unemployment worksheet shows the SUI taxable pay without regard to any limits. To review the SUI taxable pay that does factor in the limits, select PR, Taxes, Current State Tax Information option, and select the 'Current State Tax Information' report.

This report summarizes unemployment tax information for the jurisdiction selected and includes your liability and deposit information. It is displayed in the same format as the actual 940 form to simplify the transfer of appropriate information to the 940 form.The first section uses the 'SUI Pay' and 'SUI Taxes' from the 'Maintain Company Totals' screen. The 'SUI Rate' is from PR, Taxes, Activate States.

Brief explanations

Total payments:
Total Salaries, wages, commissions, fees, bonuses and vacation allowance, miscellaneous payments, etc.

Exempt Payments:
All portions of a payment that are not subject to FUTA tax. This amount is not included on line 3. These types of payments may be based on deductions, other pays, bonus payments, manual and handchecks that were marked as not subject to FUTA tax. The FUTA 'Filing status' selected in P/R, Employees, Maintain Employee, Status, window may also affect the amount that appears on line 2. If the employee status is selected as FUTA tax exempt, then the total payment amount issued for this employee is included in the amount shown on line 2. This 'Exempt Payment Line' amount continues to increase each pay period for all payments that are marked as FUTA exempt, regardless of the $7,000 FUTA taxable limit per employee.

Payment in excess of $7,000:
Total payments less exempt payments minus $7,000 per employee. This amount continues to increase for all payments that are subject to FUTA tax but exceed the $7,000 limit.

Total Exempt Payment:
Combined total of line 2 and 3 payments.

Total Taxable Wages:
Total of all wages subject to FUTA tax up to the $7,000 per employee. Lines 4 and 5 total the amount shown on line 1.

Example:

• Line 1 Total payments: $8,800.00 Total wages for all employees.
• Line 2 Exempt payments: $750.00 Equals FUTA non-taxable wages (FUTA taxable deductions).
• Line 3 Payments in excess of 7,000.00: $1,050.00 Excess portion of the total wages (less exempt payments).
• Line 4 Total exempt payments: $1,800.00 equals the total of lines 2 and 3.
• Line 5 Total taxable wages: $7,000.00 equals total FUTA taxable wages (line 1 minus line 4).