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How do i calculate the 940 credit reduction

How do I calculate the 940 credit reduction for CA?

3 Comments
QuickBooks Team

Re: How do i calculate the 940 credit reduction

Hello and welcome to the Community, doreenmccabe.

 

I'd be glad to provide some additional clarification on your question regarding the California state Credit Reduction for 2018.

 

California has paid their outstanding federal UI loans earlier than the due date which is November 10, 2018. That said, the US Department of Labor is exempting them from the credit reduction for the year 2018.

 

I'm linking the US Department of Labor website for additional insight about the final FUTA Credit Reductions:

 

https://oui.doleta.gov/unemploy/futa_credit.asp

 

Please let me know if you should have any questions. I'll keep an eye out of your response.

Community Explorer **

Re: How do i calculate the 940 credit reduction

Hello,

We are in California and in doing the 940 form it is showing us we are to receive a refund of the amount we remitted in January 2018 for the credit reduction.

Please confirm this is correct as we were under the impression the credit reduction paid based on 2017 amounts and are not owed that amount back.

Thank  you

QuickBooks Team

Re: How do i calculate the 940 credit reduction

Thanks for joining us here, GlassgirlCA.

 

The credit reduction is for the year 2018. I would recommend contacting the state agency for them to help your question about the tax refund. Please check out this link to get their contact details: https://community.intuit.com/articles/1458555-california-payroll-tax-compliance.

 

 

Though, if you're using Assisted Payroll please contact our Payroll Team instead. Here's how:

 

  1. Go to this link: https://payroll.intuit.com/support/contact/?infosrc=qs&service=2.
  2. Make sure to select QuickBooks Assisted Payroll in the upper-right hand corner.
  3. Select Payroll, then click View Contact Info

You're always welcome to visit us again if you have other payroll questions.