Sharon’s Dance Studio has the following information related to its current year payroll as of December 31:
a, Federal Unemployment Tax Payable as of December 31, $ 110.00
b. FUTA taxable earnings limit of $ 7,000, rate 0.6 percent (0.006)
c. First- quarter FUTA taxable liability, $ 520.00, paid April 30
d. Second- quarter FUTA taxable liability, $ 45.00 (liability under $ 500, no payment made)
e. Third- quarter FUTA taxable liability, $ 39.00 (total liability under $ 500, no payment made)
f. Fourth- quarter FUTA taxable liability, $ 26.00 (payment to be made January of the following year)
g. FUTA taxable earnings for the year, $ 105,000
h. Total Dance Instructor Wages, $ 195,000
i. Sharon’s Dance Studio EIN, 75- 9182736
j. No exempt FUTA payments
k. Address: 392 E. Michigan Ave., Smithville, TX, 78957 required Go to www.irs.gov to locate Form 940.
Prepare Form 940 and the corresponding 940- V payment voucher for the year. Then record the appropriate FUTA payment entry in the journal.