Instructions For Form 940 - Employer'S Annual Federal Unemployment (Futa) Tax Return - 2005 Page 4

ADVERTISEMENT

or less, carry it to the next quarter; a deposit is not
have to file Form 940 (or Form 940-EZ) in the future, see
required. If your FUTA tax for the fourth quarter (plus any
Final return on page 2.
undeposited amount from any earlier quarter) is over
Penalties and Interest
$500, deposit the entire amount by January 31, 2006. If it
is $500 or less, you can either make a deposit or pay it
Avoid penalties and interest by making tax deposits when
with your Form 940 by January 31. (If you deposit it by
due, filing a correct return, and paying all taxes when
January 31, you may file Form 940 by February 10,
due. There are penalties for late deposits, insufficient
2006.)
deposits, failure to deposit using EFTPS (when required),
and late filing unless you can show reasonable cause.
The deposit due dates are shown in the following
There are also penalties for willful failure to pay tax, and
chart.
for filing false or fraudulent returns.
If undeposited FUTA tax is over $500 on —
Deposit it
by —
How To Get Forms and Publications
March 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . April 30
You can get most IRS forms and publications by
June 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . July 31
accessing the IRS website at or by calling
September 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . October 31
the IRS at 1-800-TAX-FORM (1-800-829-3676).
December 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . January 31
If any deposit due date falls on a Saturday,
Specific Instructions
Sunday, or legal holiday, you may deposit on the
TIP
Employer’s name, address, calendar year, and
next business day.
employer identification number (EIN). If you are not
How to deposit. If you choose not to enroll in EFTPS
using a preaddressed Form 940, type or print your name,
and are not required to use EFTPS (see Electronic
trade name, address, calendar tax year, and EIN on the
deposit requirement below), use Form 8109, Federal
form. Enter your name, address, calendar tax year, and
Tax Deposit Coupon, when you make each tax deposit.
EIN here, even if you must complete Form 940-V,
The IRS will pre-enroll you in EFTPS when you apply
Payment Voucher. Also enter your name and EIN at the
for an employer identification number (EIN). Follow the
top of page 2.
instructions in your EIN Package to activate your
If you are using a preaddressed Form 940 and your
enrollment and begin making your tax deposits.
address as shown is incorrect, cross it out and make the
necessary changes.
For new employers, if you would like to receive a
Federal Tax Deposit (FTD) coupon booklet call
Employer identification number (EIN). If you do not
1-800-829-4933. Allow 5 to 6 weeks for delivery.
have an EIN, apply for one on Form SS-4, Application for
Employer Identification Number or by visiting the IRS
Make your deposits with an authorized financial
website at /smallbiz. If you do not have an
institution (for example, a commercial bank that is
EIN by the time a return is due, write “Applied For” and
qualified to accept federal tax deposits). To avoid a
the date you applied in the space shown for the number.
possible penalty, do not mail deposits directly to the IRS.
Records of your deposits will be sent to the IRS for
Questions A through C. If you answer “Yes” to
crediting to your business accounts.
questions A –C and “No” to question D (see below), you
may file Form 940-EZ, a simpler version of Form 940. If
Electronic deposit requirement. You must make
you answer “No” to questions A, B, or C, or “Yes” to
electronic deposits of all depository taxes (such as
question D (see below) or if you are a successor
employment tax, excise tax, and corporate income tax)
employer claiming a credit for state unemployment
using the Electronic Federal Tax Payment System
contributions paid by the prior employer, you must file
(EFTPS) in 2006 if:
Form 940.
The total deposits of such taxes in 2004 were more
than $200,000 or
Question D. If you answer “Yes” to question D, you
You were required to use EFTPS in 2005.
must file Form 940. You cannot file Form 940-EZ
because you must use Form 940 to compute the
If you are required to use EFTPS and use Form 8109
additional FUTA tax on wages paid in a credit reduction
instead, you may be subject to a 10% penalty. If you are
state.
not required to use EFTPS, you may participate
voluntarily. To enroll in or get more information about
Part I. Computation of Taxable Wages
EFTPS, call 1-800-555-4477; or to enroll online, visit the
EFTPS website at
Line 1 — Total payments. Enter the total payments
(before any deductions) you made during the calendar
For deposits made by EFTPS to be on time, you
year for services of employees, even if the payments are
!
must initiate the transaction at least one business
not taxable for FUTA tax. Include salaries, wages,
day before the date the deposit is due.
CAUTION
commissions, fees, bonuses, vacation allowances, and
amounts paid to temporary or part-time employees; the
Not Liable for FUTA Tax?
value of goods, lodging, food, clothing, and noncash
If you receive Form 940 and are not liable for FUTA tax
fringe benefits; employer contributions to a 401(k) plan,
for 2005, write “Not Liable” across the front of the form,
payments to a Health Savings Account (HSA) or Archer
sign the form, and return it to the IRS. If you will not
MSA, payments under adoption assistance programs,
-4-

ADVERTISEMENT

00 votes

Related Articles

Related forms

Related Categories

Parent category: Financial
Go
Page of 8