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

•

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

Other payments, such as:

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

— All non-cash payments and certain cash payments for

temporary employees.

agricultural labor, and all payments to “H-2(A)” visa workers.

•

Fringe benefits, such as:

See For agricultural employers on page 2 or get Pub. 51

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

(Circular A), Agricultural Employer’s Tax Guide.

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

— Payments made under a workers’ compensation law

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

because of a work-related injury or sickness. See section 6

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

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

fringe benefits.

— Payments for domestic services if you did not pay cash

— Section 125 (cafeteria) plan benefits.

wages of $1,000 or more (for all domestic employees) in any

•

Retirement/Pension, such as:

calendar quarter in 2009 or 2010. See Pub. 926, Household

Employer’s Tax Guide.

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

— Payments for services provided to you by your parent,

Archer MSA, payments under adoption assistance

spouse, or child under the age of 21. See section 3 of Pub.

programs, and contributions to SIMPLE retirement accounts

15 (Circular E), Employer’s Tax Guide.

(including elective salary reduction contributions).

— Payments for certain fishing activities. See Pub. 334,Tax

— Amounts deferred under a non-qualified deferred

Guide for Small Businesses.

compensation plan.

•

— Payments to certain statutory employees. See section 1

Other payments, such as:

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

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

— Payments to nonemployees who are treated as your

reported to you.

employees by the state unemployment tax agency.

— Payments made by a predecessor employer to the

See section 3306 and its related regulations for more

employees of a business you acquired.

information about FUTA taxation of retirement plan

— Payments to nonemployees who are treated as your

contributions, dependent care payments, and other payments.

employees by the state unemployment tax agency.

For more information on payments exempt from FUTA tax,

Wages may be subject to FUTA tax even if they are

see section 14 in Pub. 15 (Circular E) or section 10 in Pub. 51

excluded from your state’s unemployment tax.

(Circular A).

CAUTION

For details on wages and other compensation, see section 5

Example:

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

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

Example:

$2,000 in health insurance benefits. You paid $8,000 to Employee B,

including $500 in retirement benefits. You paid $16,000 to Employee C,

including $2,000 in health and retirement benefits.

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

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

$ 2,000 Health insurance benefits for Employee A

$44,000 Amount paid to Employee A

500 Retirement benefits for Employee B

8,000 Amount paid to Employee B

+ 2,000 Health and retirement benefits for Employee C

16,000 Amount paid to Employee C

$4,500 Total payments exempt from FUTA tax. You would

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

enter this amount on line 4 and check boxes 4a and

amount on line 3.

4c.

4. Payments exempt from FUTA tax

5. Total of payments made to each employee in

excess of $7,000

If you enter an amount on line 4, check the appropriate box or

boxes on lines 4a through 4e to show the types of payments

Only the first $7,000 you paid to each employee in a calendar

exempt from FUTA tax. You only report a payment as

year is subject to FUTA tax. This $7,000 is called the FUTA

exempt from FUTA tax on line 4 if you included the

wage base.

payment on line 3.

Enter on line 5 the total of the payments over $7,000 you

Some payments are exempt from FUTA tax because the

paid to each employee during 2010 after subtracting any

payments are not included in the definition of wages or the

payments exempt from FUTA tax shown on line 4.

services are not included in the definition of employment.

Payments exempt from FUTA tax may include:

Following our example:

•

Fringe benefits, such as:

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

— The value of certain meals and lodging.

Employee B, and $16,000 to Employee C, including a total of $4,500 in

— Contributions to accident or health plans for employees,

payments exempt from FUTA tax for all 3 employees. (To determine the

including certain employer payments to a Health Savings

total payments made to each employee in excess of the FUTA wage

Account or an Archer MSA.

base, the payments exempt from FUTA tax and the FUTA wage base

— Employer reimbursements (including payments to a third

must be subtracted from total payments. These amounts are shown in

party) for qualified moving expenses, to the extent that these

parentheses.)

expenses would otherwise be deductible by the employee.

— Payments for benefits excluded under section 125

Employees

(cafeteria) plans.

Total payments to

$44,000

$8,000

$16,000

•

Group term life insurance.

employees

Payments exempt from

(2,000)

(500)

(2,000)

For information about group term life insurance and other

FUTA tax

payments for fringe benefits that may be exempt from FUTA

FUTA wage base

(7,000)

tax, see Pub. 15-B, Employer’s Tax Guide to Fringe Benefits.

•

Retirement/Pension, such as employer contributions to a

$35,000

$ 500

$ 7,000

qualified plan, including a SIMPLE retirement account (other

$35,000

than elective salary reduction contributions) and a 401(k) plan.

500

•

Dependent care, such as payments (up to $5,000 per

+ 7,000

employee, $2,500 if married filing separately) for a qualifying

$42,500 Total of payments made to each employee in excess of

person’s care that allows your employees to work and that

$7,000. You would enter this amount on line 5.

would be excludable by the employee under section 129.

-6-

Instructions For Form 940 - Employer'S Annual Federal Unemployment (Futa) Tax Return - 2010 Page 6

Related Articles

Related forms

Related Categories