Using the information from Problem 8A-3, please complete Form 940 for Allen’s Sporting Goods for the current year. Additional information needed to complete the form is as follows:
a. State reporting number: 025-319-2
b. No FUTA tax deposits were made for this year.
c. Allen’s three employees for the year all earned over $7,000.

Problem 8A-3:

The following is the monthly payroll for the last three months of the year for Allen’s Sporting Goods Shop, 2 Boat Road, Lynn, Massachusetts 01945. The shop is a sole proprietorship owned and operated by Bill Allen. The EIN for Allen’s Sporting Goods Shop is 28-9311893.

The employees at Allen’s are paid once each month on the last day of the month. Karen Becker is the only employee who has contributed the maximum into Social Security. None of the other employees will reach the Social Security wage base limit by the end of the year. Assume the rate for Social Security to be 6.2% with a wage base maximum of $117,000, and the rate for Medicare to be 1.45% on all earnings. Allen’s is classified as a monthly depositor for Form 941 payroll tax deposit purposes.