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Tell us if you change your name or address.

2. If you paid wages in a state that is subject to

credit reduction . . .

Notify the IRS immediately if you change your business name

or address.

Skip line 2 and go to line 3 because the U.S. Department of

•

Labor has announced that there are no credit reduction

If your business name changes, write to the IRS office where

states for tax year 2008.

you would send your return if you had no payment. See Where

Do You File? on page 2. Also see Pub. 1635, Understanding

A state that has not repaid money it borrowed from the

Your EIN, for general information on EINs.

federal government to pay unemployment benefits is called a

•

If your address changes, complete and mail Form 8822,

credit reduction state. The U.S. Department of Labor

Change of Address. Do not attach Form 8822 to your Form

determines which states are credit reduction states.

940. Mail Form 8822 separately to the address indicated on

Form 8822.

If you paid wages that are subject to the unemployment tax

laws of a credit reduction state, you may have to pay more

FUTA tax when filing your Form 940.

Type of Return

Part 2: Determine Your FUTA Tax Before

Review the box at the top of the form. If any line applies to you,

check the appropriate box to tell us which type of return you are

Adjustments for 2008

filing. You may check more than one box.

If any line in Part 2 does not apply, leave it blank.

Amended. If this is an amended return that you are filing to

correct a return that you previously filed, check box a.

3. Total payments to all employees

Successor employer. Check box b if you are a successor

Report the total payments you made during the calendar year

employer and:

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on line 3. Include payments for the services of all employees,

You are reporting wages paid before you acquired the

even if the payments are not taxable for FUTA. Your method of

business by a predecessor who was required to file a Form

payment does not determine whether payments are wages.

940 because the predecessor was an employer for FUTA tax

You may have paid wages hourly, daily, weekly, monthly, or

purposes, or

yearly. You may have paid wages for piecework or as a

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You are claiming a special credit for state unemployment

percentage of profits. Include:

tax paid before you acquired the business by a predecessor

who was not required to file a Form 940 because the

•

Compensation, such as:

predecessor was not an employer for FUTA tax purposes.

— Salaries, wages, commissions, fees, bonuses, vacation

allowances, and amounts you paid to full-time, part-time, or

A successor employer is an employer who:

temporary employees.

•

Acquires substantially all the property used in a trade or

Fringe benefits, such as:

business of another person (predecessor) or used in a

— Sick pay (including third-party sick pay if liability is

separate unit of a trade or business of a predecessor, and

transferred to the employer). For details on sick pay, see

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Immediately after the acquisition, employs one or more

Pub. 15-A, Employer’s Supplemental Tax Guide.

people who were employed by the predecessor.

— The value of goods, lodging, food, clothing, and non-cash

No payments to employees in 2008. If you are not liable

fringe benefits.

for FUTA tax for 2008 because you made no payments to

— Section 125 (cafeteria) plan benefits.

•

employees in 2008, check box c. Then go to Part 7, sign the

Retirement/Pension, such as:

form, and file it with the IRS.

— Employer contributions to a 401(k) plan, payments to an

Final: Business closed or stopped paying wages. If this

Archer MSA, payments under adoption assistance

is a final return because you went out of business or stopped

programs, and contributions to SIMPLE retirement accounts

paying wages and you will not be liable for filing Form 940 in

(including elective salary reduction contributions).

the future, check box d. Complete all applicable lines on the

— Amounts deferred under a non-qualified deferred

form, sign it in Part 7, and file it with the IRS. Include a

compensation plan.

•

statement showing the address at which your records will be

Other payments, such as:

kept and the name of the person keeping the records.

— Tips of $20 or more in a month that your employees

reported to you.

— Payments made by a predecessor employer to the

employees of a business you acquired.

— Payments to nonemployees who are treated as your

Specific Instructions

employees by the state unemployment tax agency.

Wages may be subject to FUTA tax even if they are

Part 1: Tell Us About Your Return

excluded from your state’s unemployment tax.

CAUTION

If any line in Part 1 does not apply, leave it blank.

For details on wages and other compensation, see section 5

of Pub. 15-A, Employer’s Supplemental Tax Guide.

1. If you were required to pay your state

unemployment tax in . . .

Example:

1a. One state only . . .

Enter the two-letter U.S. Postal Service abbreviation for the

You had 3 employees. You paid $44,000 to Employee A, $8,000 to

state where you were required to pay your tax on line 1a. For a

Employee B, and $16,000 to Employee C.

list of state abbreviations, see the Instructions for Schedule A

(Form 940) or visit the website for the U.S. Postal Service at

$44,000 Amount paid to Employee A

8,000 Amount paid to Employee B

16,000 Amount paid to Employee C

1b. More than one state (you are a multi-state employer) . . .

$68,000 Total payments to employees. You would enter this

Check the box on line 1b. Then fill out Part 1 of Schedule A

amount on line 3.

(Form 940), and attach it to your Form 940.

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Instructions For Form 940 - Employer'S Annual Federal Unemployment (Futa) Tax Return - 2008 Page 5

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