Question

a. Complete Part 2 of Form 940 based on the following information: (Round your answers to two decimal places, if necessary.)
Total payroll for the year $913,590
Payroll to employees in excess of $7,000 $421,930 Employer contributions into employees' 401(k) plans$23,710
b. If the employer is located in California, which has a credit reduction of 2.1%, what would be the amount of the credit reduction?

Answer 1

1.913 590-421 930=491 660 the tax base

2.$491660\times0.021=10324.86$  credit reduction