INSTRUCTIONS: EMPLOYER'S ANNUAL FEDERAL UNEMPLOYMENT (FUTA) TAX RETURN (Form 940)
Businesses which paid $1,500 or more to its employees during any calendar year quarter for the last two years or had one or more employees for at least 20 weeks of the year and your business was sold or transferred during the past year, you must file a federal form 940. This form is found on the website of the Internal Revenue Service.
Employer's Annual Federal Unemployment (FUTA) Tax Return 940 Step 1: At the top of the form, enter your employer identification number, name, trade name (if applicable) and address.
Employer's Annual Federal Unemployment (FUTA) Tax Return 940 Step 2: Indicate with a check mark if you are filing an amended return, one documenting a successor employer, one concerning no payments to employees in the tax year in question, or a final 940 return for a company which has closed or ceased paying wages.
Employer's Annual Federal Unemployment (FUTA) Tax Return 940 Step 3: Answer the questions on lines 1a through 2 in Part 1. If you are a multi-state employer or paid wages in a state with credit reduction, you must complete the separate Schedule A for this return.
Employer's Annual Federal Unemployment (FUTA) Tax Return 940 Step 4: On lines 3 through 8, compute your FUTA tax due prior to adjustments as instructed.
Employer's Annual Federal Unemployment (FUTA) Tax Return 940 Step 5: Lines 9 through 11 provide instructions for calculating applicable adjustments.
Employer's Annual Federal Unemployment (FUTA) Tax Return 940 Step 6: Add lines 8 through 12 and enter the sum on line 13. Calculate your balance due on line 14 or the amount overpaid on line 15.
Employer's Annual Federal Unemployment (FUTA) Tax Return 940 Step 7: Only those who entered more than $500 on line 12 have to complete Part 5, which requires the documentation of your tax liability on a quarterly basis.
Employer's Annual Federal Unemployment (FUTA) Tax Return 940 Step 8: If you wish to authorize an employee, paid tax preparer or another person to discuss this return with the IRS, give their name, phone number and 5-digit PIN in Part 6.
Employer's Annual Federal Unemployment (FUTA) Tax Return 940 Step 9: Sign and print your name in Part 7. Provide your title, the date and your preferred daytime phone number.
