Looking for a Form 940 Templates? Download it for free!

Employer identification number (EIN). The IRS monitors tax

statement showing the address at which your records will be

filings and payments by using a numerical system to identify

kept and the name of the person keeping the records.

taxpayers and to make sure that businesses comply with

federal tax laws. A unique 9-digit EIN is assigned to all

Disregarded entities. A disregarded entity is required to file

corporations, partnerships, and some sole proprietors.

Form 940 using its name and Employer Identification Number

Businesses that need an EIN must apply for a number and use

(EIN), not the name and EIN of its owner. An entity that has a

it throughout the life of the business on all tax returns,

single owner and is disregarded as separate from its owner for

payments, and reports.

federal income tax purposes is treated as a separate entity for

purposes of payment and reporting federal employment taxes.

Your business should have only one EIN. If you have more

If the entity does not currently have an EIN, it must apply for

than one and are unsure which one to use, call 1-800-829-4933

one using one of the methods explained earlier. Disregarded

to verify your correct EIN.

entities include single-owner limited liability companies (LLCs)

If you do not have an EIN, apply for one by:

that have not elected to be taxed as a corporation for federal

•

Visiting the IRS website at IRS.gov and clicking on Apply for

income tax purposes, qualified subchapter S subsidiaries, and

an Employer Identification Number (EIN) Online under Online

certain foreign entities treated as disregarded entities for U.S.

Services.

income tax purposes. Although a disregarded entity is treated

•

Calling 1-800-829-4933 and applying by telephone, or

as a separate entity for employment tax purposes, it is not

•

Filling out Form SS-4 and mailing it to the address in the

subject to FUTA tax if it is owned by a tax-exempt organization

Instructions for Form SS-4 or faxing it to the number in the

under section 501(c)(3) and is not required to file Form 940. For

Instructions for Form SS-4.

more information, see Disregarded entities and qualified

If you do not have an EIN by the time a return is due, write

subchapter S subsidiaries in the Introduction section of Pub. 15

“Applied For” and the date you applied in the space shown for

(Circular E), Employer’s Tax Guide.

the EIN on pages 1 and 2 of your return.

Always be sure the EIN on the form you file exactly

Specific Instructions

matches the EIN that IRS assigned to your business. Do

TIP

not use a social security number or individual taxpayer

identification number (ITIN) on forms that ask for an EIN. Filing

a Form 940 with an incorrect EIN or using the EIN of another’s

Part 1: Tell Us About Your Return

business may result in penalties and delays in processing your

return.

1. If you were required to pay your state

Tell us if you change your name or address.

unemployment tax in . . .

Notify the IRS immediately if you change your business name

Identify the state(s) where you were required to pay state

or address.

unemployment taxes.

•

If your business name changes, write to the IRS using the

1a. One state only. Enter the two-letter U.S. Postal Service

Without a payment address. See Where Do You File? on page

abbreviation for the state where you were required to pay your

2. Also see Pub. 1635, Understanding Your EIN, for general

tax on line 1a. For a list of state abbreviations, see the

information on EINs.

•

Instructions for Schedule A (Form 940) or visit the website for

If your address changes, complete and mail Form 8822,

the U.S. Postal Service at

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

940. Mail Form 8822 separately to the address indicated on

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

Form 8822.

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

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

Type of Return

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

credit reduction.

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

If you paid wages that are subject to the unemployment tax

filing. You may check more than one box.

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

FUTA tax when filing your Form 940.

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

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

A state that has not repaid money it borrowed from the

Successor employer. Check box b if you are a successor

federal government to pay unemployment benefits is called a

employer and:

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

•

You are reporting wages paid before you acquired the

determines which states are credit reduction states.

business by a predecessor who was required to file a Form

For tax year 2010, Indiana, Michigan, and South Carolina

940 because the predecessor was an employer for FUTA tax

are credit reduction states. If you paid wages subject to the

purposes, or

unemployment tax laws of these states, check the box on line 2

•

You are claiming a special credit for state unemployment

and fill out Part 2 of Schedule A (Form 940). See the

tax paid before you acquired the business by a predecessor

instructions for line 9 before completing Part 2 of Schedule A

who was not required to file a Form 940 because the

(Form 940).

predecessor was not an employer for FUTA tax purposes.

Part 2: Determine Your FUTA Tax Before

A successor employer is an employer who:

•

Adjustments for 2010

Acquires substantially all the property used in a trade or

business of another person (predecessor) or used in a

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

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

•

Immediately after the acquisition, employs one or more

3. Total payments to all employees

people who were employed by the predecessor.

No payments to employees in 2010. If you are not liable

Report the total payments you made during the calendar year

for FUTA tax for 2010 because you made no payments to

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

employees in 2010, check box c. Then go to Part 7, sign the

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

form, and file it with the IRS.

payment does not determine whether payments are wages.

Final: Business closed or stopped paying wages. If this

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

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

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

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

percentage of profits. Include:

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

•

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

Compensation, such as:

-5-

Instructions For Form 940 - Employer'S Annual Federal Unemployment (Futa) Tax Return - 2010 Page 5

Related Articles

Related forms

Related Categories