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Form 940-B Department of the Treasury Internal Revenue Service (Rev. May 2010) Name and address of employer Request for Verification of Credit Information Shown on Form 940 Date Calendar year Employer

How to fill out form 940

How to fill out form 940?

1. Obtain form 940: You can download form 940 from the official website of the Internal Revenue Service (IRS) or request a copy to be mailed to you.
2. Gather necessary information: Before filling out the form, you will need to have certain information on hand, such as your employer identification number (EIN), total payroll expenses, and any relevant tax credits.
3. Provide employer details: Begin by filling in your employer's name, address, and EIN in the designated sections of the form.
4. Calculate payroll taxes: Enter the total wages paid to employees during the tax year and calculate the federal unemployment tax (FUTA) owed. This involves multiplying the taxable wages by the FUTA tax rate, which may vary from year to year.
5. Determine any credits: Assess whether you qualify for any FUTA tax credits, such as the credit for state unemployment taxes paid or the credit for small employer compensation.
6. Complete payment details: Fill out the payment information section, including the total FUTA tax liability and any previously paid amounts.
7. Finalize and submit: Verify all the information provided, attach any necessary schedules or documentation, and sign the form. Retain a copy for your records and send the completed form to the appropriate IRS address provided in the instructions.

Who needs form 940?

1. Employers: Form 940 is generally required to be filed by employers who paid wages of $1,500 or more to employees during any calendar quarter of the current or previous year. This includes nonprofit organizations, government agencies, and agricultural employers.
2. Individuals subject to FUTA tax: If you are an employer subject to the Federal Unemployment Tax Act (FUTA), you will need to file form 940 to report and pay your FUTA tax liability.
3. Exempt organizations: Some tax-exempt organizations, such as religious organizations and certain governmental entities, may also be required to file form 940 if they meet the wage payment threshold outlined by the IRS. It is recommended to consult the IRS guidelines or a tax professional to determine your specific filing obligations.

Video instructions and help with filling out and completing form 940 fillable

Instructions and Help about form 940

Hi welcome to easy payroll guide my name is Karen Hutchinson and in this video we're going to be completing the IRS form 940 this is the federal unemployment tax that is owed at the end of each year it's also known as FTA which is the federal unemployment tax act we are going to complete the IRS 940 using a fictitious example this example kind of piggybacks off of the example that I did in my earlier video at the beginning of this page as we were calculating the food a liability we have three employees in this business and the employees are all paid wages that are taxable for food a' employee an is a resident of Maryland and has been paid a total wage of $16,000 employee B is a resident of Maryland as well and has been paid wages of $13,000 an employee's C is a resident of Delaware and has been paid total wages of $8,000 this is a total of 37 thousand dollars paid and wages I wanted to give you an example of a multi-state 940 as well, so that's why I have one employee here who is a resident of Delaware, so this means that the employer would be playing state unemployment taxes to Maryland and to Delaware for its respective employees so what this means is that I owe as the employer food or wages on the first twenty-one thousand dollars because each of my employees have met the minimum requirement of or the maximum requirement of seven thousand, so FDA is paid on the first seven thousand dollars in wages for each employee since they all made over seven thousand dollars I'm responsible for paying the full amount of food a wage for each employee, so that's twenty-one thousand dollars seven thousand times three employees I have excess wages of sixteen thousand dollars if I take my total wages thirty-seven thousand and subtract my food Oh ages which is 21 thousand you'll see that I've paid excess wages of sixteen thousand these are the amount of wages that are not subject to food attacks because they these are the wages that are over the seven thousand dollar threshold for each employee, so we're going to use this information to complete the IRS form 940 now the beginning of the 940 the top portion is your business information you would complete this with all the information for your particular business, and you won't really probably need to check anything in this box unless you're amending, or you're completing closing your business and this is your final 940 if you did not make any payments to employees, and you still need to file this return, and you'll want to check box C, so we're going to start with Part one and Part one says that if you had to pay state unemployment tax in only one state then you would enter the state abbreviation and 1a so if all of my employees were from Maryland then I would enter MD for Maryland's here but since I have an employee from Delaware I am considered a multi-state employer, so that means that for line B I'm going to check the box because I'm a multi-state employer which means that I've employed employees from more...

For pdfFiller’s FAQs

What is form 940?

Form 940 is a tax form used by employers to report and pay the federal unemployment tax (FUTA) on wages paid to employees. The FUTA tax helps fund unemployment benefits provided to workers who have lost their jobs. This form is filed annually and is due by January 31st of the following year. It provides information such as the employer's name, address, and identification number, as well as details on the wages subject to FUTA tax and any adjustments or credits.

Who is required to file form 940?

Form 940, also known as the Employer's Annual Federal Unemployment Tax Return, is required to be filed by employers who pay wages of $1,500 or more in any calendar quarter, or who have at least one employee for at least a portion of a day in any 20 or more different weeks in a calendar year.

How to fill out form 940?

To fill out Form 940, which is used to report Federal Unemployment Tax Act (FUTA) taxes, follow these steps: 1. Provide your business information: Enter your business name, address, Employer Identification Number (EIN), and contact information at the top of the form. 2. Determine your FUTA liability: Calculate your FUTA liability by multiplying the FUTA tax rate (currently 6%) by the total amount of taxable wages paid to your employees. If your liability for the year is $500 or less, you may skip lines 10-13 and enter $500 on line 14. 3. Report advance payments made: If you made any FUTA tax payments in advance, report the total amount and dates on lines 6 and 7. 4. Deduct state unemployment taxes: If you paid state unemployment taxes during the reporting period, deduct the amount on line 8. 5. Calculate the net FUTA tax due: Subtract the advance payments, state unemployment taxes, and any other adjustments from your total FUTA liability. Enter the result on line 14. 6. Determine if you can make a decrease adjustment: If you paid all your state unemployment taxes owed for the year by the due date for filing Form 940, you may be eligible for a credit reduction. Refer to the instructions or contact the IRS for more information. 7. Make an election for optional credit: If you are eligible, elect to use the FUTA tax as a credit against your state unemployment tax. Enter this amount on line 16. 8. Calculate the final FUTA tax due: Subtract the decrease adjustment or optional credit (if applicable) from the net FUTA tax due on line 14. Enter the result on line 17. 9. Complete the payment voucher: If the amount on line 17 is more than $500, you are required to make a payment. Complete the payment voucher by providing your payment information and the total amount due with the return. 10. Sign and date the form: Sign and date the form to certify its accuracy and completeness. Remember to keep a copy of the completed Form 940 for your records and submit the form to the IRS by the due date, which is January 31st of the following year.

What is the purpose of form 940?

The purpose of Form 940, also known as the Employer's Annual Federal Unemployment (FUTA) Tax Return, is to report and calculate the employer's annual federal unemployment tax liability. The form is used to determine the amount of unemployment tax owed by the employer based on the wages paid to employees during the year. Form 940 is filed by employers to report and pay the federal unemployment tax, which helps fund unemployment benefits for workers who have lost their jobs.

What information must be reported on form 940?

Form 940, also known as the Employer's Annual Federal Unemployment (FUTA) Tax Return, is used to report an employer's annual federal unemployment tax liability. The following information must be reported on Form 940: 1. Employer Information: This includes the employer's name, address, and Employer Identification Number (EIN). 2. Taxable FUTA wages: This refers to the total wages paid to employees during the calendar year that are subject to federal unemployment tax. 3. FUTA tax owed: This is the amount of federal unemployment tax owed based on the taxable wages reported. 4. Payments and Credits: Any deposits made or credits claimed must be reported to offset the FUTA tax liability. 5. Balance Due or Overpayment: The difference between the total tax owed and the payments/credits will determine if there is a balance due or an overpayment. 6. Return Preparer Information: If the return is prepared by someone else, their name, address, and EIN or Social Security Number should be provided. It is important to note that additional forms or schedules may need to be attached to Form 940 depending on an employer's specific circumstances, such as if they received a credit reduction or if they are a "Household Employer." It is advisable to consult the official IRS instructions for Form 940 to ensure accurate reporting.

When is the deadline to file form 940 in 2023?

The deadline to file Form 940 in 2023 is January 31, 2024.

What is the penalty for the late filing of form 940?

The penalty for late filing of Form 940, which is the Employer's Annual Federal Unemployment (FUTA) Tax Return, is a percentage of the unpaid tax due for each month or part of a month that the return is late. The penalty rate is generally 5% of the unpaid tax per month, with a maximum penalty of 25% of the unpaid tax. The penalty may be waived or reduced if you can show reasonable cause for the late filing.

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