Instructions For Form 940 - Employer'S Annual Federal Unemployment (Futa) Tax Return - 2004 Page 2

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Form 940-EZ, Employer’s Annual Federal
In some cases, such as when you employ both
Unemployment (FUTA) Tax Return, is a simpler version
household employees and other employees, you may
of Form 940. You may use Form 940-EZ instead of Form
choose to report social security, Medicare, and withheld
940 to report your annual FUTA tax if:
federal income taxes for your household employee(s) on
You paid unemployment contributions to only one
Form 941, Employer’s Quarterly Federal Tax Return, or
state,
Form 943, Employer’s Annual Federal Tax Return for
You paid all state unemployment contributions by
Agricultural Employees, instead of on Schedule H (Form
January 31, 2005 (February 10, 2005, if you deposited all
1040). If you choose to report on Form 941 or Form 943,
FUTA tax when due),
you must use Form 940 (or Form 940-EZ) to report FUTA
All wages that were taxable for FUTA tax were also
tax.
taxable for your state’s unemployment tax. If, for
Agricultural employers. File a FUTA tax return if either
example, you paid wages to corporate officers (these
1 or 2 below applies:
wages are taxable for FUTA tax) in a state that exempts
1. You paid cash wages of $20,000 or more to
corporate officers’ wages from its unemployment tax, you
farmworkers during any calendar quarter in 2003 or 2004
cannot use Form 940-EZ, and
or
You did not pay wages in a credit reduction state (that
2. You employed 10 or more farmworkers during at
is, New York).
least some part of a day (whether or not at the same
A successor employer claiming a credit for state
time) during any 20 or more different weeks in 2003 or 20
!
unemployment contributions paid by the prior
or more different weeks in 2004.
employer must file Form 940.
CAUTION
Count wages paid to aliens admitted on a temporary
When To File
basis to the United States to perform farmwork, also
known as “H-2(A)” visa workers, to see if you meet either
File Form 940 for 2004 by January 31, 2005. However, if
1 or 2 above. However, wages paid to “H-2(A)” visa
you deposited all FUTA tax when due, you may file on or
workers are not subject to FUTA tax.
before February 10, 2005. Your return will be considered
timely filed if it is properly addressed and mailed First
Indian tribal governments. Services rendered to a
Class or sent by an IRS-designated delivery service by
federally-recognized Indian tribal government (including
the due date. See Pub. 15 (Circular E), Employer’s Tax
any subdivision, subsidiary, or wholly-owned business
Guide, for a list of designated delivery services. Also see
enterprise) after December 20, 2000 are exempt from
Where To File later.
FUTA tax (and no Form 940 or Form 940-EZ for 2004 is
required), subject to the tribe’s compliance with
Private delivery services cannot deliver items to
applicable state law. See code section 3309(d).
!
P.O. boxes.
Nonprofit organizations. Religious, educational,
CAUTION
charitable, etc., organizations described in section
Who Must File
501(c)(3) and exempt from tax under section 501(a) are
not subject to FUTA tax and are not required to file.
Except as noted below, you must file Form 940 if Test 1
or Test 2 applies.
State and local government employers. State or local
government employers are not subject to FUTA tax and
Test 1. You paid wages of $1,500 or more in any
are not required to file.
calendar quarter in 2003 or 2004.
Test 2. You had one or more employees for at least
Amended Returns
some part of a day in any 20 or more different weeks in
Use a new Form 940 to amend a previously filed Form
2003 or 20 or more different weeks in 2004.
940. Check the “Amended Return” box above Part I.
Count all regular, temporary, and part-time employees.
Enter all amounts that should have been on the original
A partnership should not count its partners. If a business
return, and sign the form. Attach an explanation of the
changes hands during the year, each employer who
reasons for the amended return. For example, you are
meets Test 1 or 2 must file. For purposes of Test 1 or
filing to claim credit for contributions paid to your state
Test 2 only, do not include wages paid by the prior (or
unemployment fund after the due date of Form 940. File
subsequent) employer. But see Successor employer on
the amended return with the Internal Revenue Service
page 5.
address where you would have filed the original return
Household employers. File a FUTA tax return only if
without payment. Do not mail an amended Form 940
you paid total cash wages of $1,000 or more (for all
(even if it includes a payment) to a P.O. box location.
household employees) in any calendar quarter in 2003 or
If you were required to file Form 940 but filed Form
2004 for household work in a private home, local college
940-EZ instead and you must correct an error, file the
club, or local chapter of a college fraternity or sorority.
amended return on Form 940.
Individuals, estates, and trusts that owe FUTA tax for
household work in a private home, in most cases, must
If you are filing an amended return after June 30 to
file Schedule H (Form 1040), Household Employment
claim contributions to your state’s unemployment fund
Taxes, instead of Form 940 (or Form 940-EZ). See the
that you paid after the due date of Form 940, attach a
Instructions for Schedule H (Form 1040), Household
copy of the certification from the state. This will expedite
Employers.
the processing of the amended return.
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