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Last modified by Andrew K on 2025/12/31 20:51
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1 A state that has not repaid money it borrowed from the federal government to pay unemployment benefits is called a **Credit Reduction State**.
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3 The [[U.S. Department of Labor>>https://www.irs.gov/businesses/small-businesses-self-employed/futa-credit-reduction]] determines which states are Credit Reduction States.
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5 The current Credit Reduction States will have a Reduction Rate shown on the Schedule A of the 940 Form.
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9 == Related Pages: ==
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12 === [[Non-credit Reduction States on 940 Schedule A Form>>doc:Windows.U\.S\..Standard Filing Questions ».940 Forms.Non-credit Reduction States on 940 Schedule A Form.WebHome]] ===
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14 ====== Read the requirement for 940 Schedule A. ======
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17 === [[Increasing Amounts for Credit Reduction States>>doc:Windows.U\.S\..Standard Filing Questions ».940 Forms.Increasing Amounts for Credit Reduction States.WebHome]] ===
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19 ====== Read what happens if the state is a Credit Reduction State. ======
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22 === [[What are the Credit Reduction States?>>doc:Windows.U\.S\..Standard Filing Questions ».940 Forms.What are the Credit Reduction States?.WebHome]] ===
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24 ====== Read which states are considered Credit Reduction States. ======