You stated that since CA is a credit reduction state, their FUTA will be 2.1%. This is derived from the Schedule A. This 2.1% is added to the .6% from Line 8 of the 940 to equal 2.7% total FUTA for California employers.
To my knowledge, California pays a total of 2.1% of FUTA – period. This is not on top of 0.6% but in place of. All other states pay 0.6% of FUTA tax except for Puerto Rico which pays the same rate as California, 2.1%. I recommend that you consult with a tax expert to confirm this info.
Hope this helps.
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