The Schedule UTC is a tax form used by taxpayers in Kentucky to claim the Unemployment Tax Credit. This credit allows businesses to receive a tax reduction for hiring individuals who were previously unemployed for at least 60 days. The credit is equal to $100 for each eligible person hired, provided they remain employed for a minimum of 180 consecutive days during the taxable year. The Schedule UTC is filed alongside various Kentucky tax forms, such as Forms 720, 720U, PTE, 725, 740, 740-NP, or 741, depending on the type of business entity. By completing this form, employers can receive tax benefits while also contributing to reducing unemployment in Kentucky.
How to File Schedule UTC
To file Schedule UTC, follow the steps outlined in this guide and ensure that you meet all the eligibility requirements for claiming the unemployment tax credit. You will need to gather information on the employees you are claiming the credit for and ensure they meet the criteria established by Kentucky law.
How to Complete Schedule UTC: Line-by-Line Instructions
Let’s go through each line of the Schedule UTC to ensure you understand what needs to be filled out.
- Name of Entity:
- Enter the name of your business or entity here.
- Social Security Number:
- For individual taxpayers, enter your Social Security number.
- Street Address, Apt. Number:
- Enter the street address of your business.
- Federal Identification Number:
- Provide the federal tax identification number for your business.
- City, State, ZIP Code:
- Fill in the city, state, and ZIP code where your business is located.
- Kentucky Corporation/LLET Account Number:
- Enter your Kentucky Corporation or Limited Liability Entity Tax (LLET) account number.
Persons Employed (Section 1)
In this section, you will list the employees for whom you are claiming the unemployment tax credit. Make sure you follow the criteria set by Kentucky law.
- Employee’s Name:
- List the full name of each employee for whom you are claiming the credit.
- Social Security Number:
- Enter the Social Security number of each employee listed.
- Employment Dates:
- Date Employed: Enter the date each employee started working for your business.
- Through: Enter the date each employee was employed through (if applicable during the tax year).
- Office of Employment and Training Certificate Number:
- Provide the certificate number issued by the Kentucky Office of Employment and Training for each employee.
- Date Employed Through:
- If applicable, enter the last date each employee was employed during the tax year.
- Total Number of Employees Listed Above:
- This line sums the number of employees listed in the previous section. Enter the total number here.
Unemployment Tax Credit Calculation (Section 2)
- Unemployment Tax Credit:
- Multiply the number of employees listed (from line 12) by $100. This is the amount of credit you are claiming for the employees listed above.
Entering Information on Other Forms
For various tax forms, you will need to enter the unemployment tax credit amount on the corresponding lines.
- Form 720 or 720U:
- For these forms, the unemployment tax credit should be entered on Schedule TCS, Part II, Columns E and F.
- Form PTE:
- If filing Form PTE, enter the amount on Schedule TCS, Part II, Column E, and on PTE, Schedule K. General Partnerships should only enter this amount on Form PTE, Schedule K.
- Form 725:
- Enter the unemployment tax credit on Schedule TCS, Part II, Column E.
- Form 740:
- Enter the amount on Schedule ITC, Section A, Line 7.
- Form 740-NP:
- Enter the amount on Schedule ITC, Section A, Line 7.
- Form 741:
- Enter the unemployment tax credit on Form 741, Line 18.