In MN owners wages are SUI exempt. It is my understanding that when you do not pay SUI taxes on wages, you do not get to take the 5.4 credit on the 6.0 FUTA tax rate.

How is this accounted for on Form 940? Line 10 indicates that you are to complete the worksheet if SOME taxable FUTA wages you paid were excluded from state unemployment tax. But when you complete the worksheet there really isn't anywhere that you account for it? The instructions ask you to have the information, but as far as I can see it is never used.

(FYI: State of MN indicated that we are not to include wages of owners whose earnings are SUI exempt on wage reporting at all, so the SUI taxable amount that we have already excludes the wages.)

Do you calculate the wages upon which you did not pay SUI and put that on 940 LINE 10 on top of the worksheet or is it somehow accounted for in the worksheet and I am just not seeing it????

Please advise. THANK YOU FOR YOUR HELP.