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7. Value of certain meals and lodging. (See section 5

for year” must equal your total FUTA tax shown on

in Circular E (Pub.15).)

line 6.

8. Cost of group-term life insurance.

Record your FUTA tax liability based on when you pay

9. Payments attributable to the employee’s

wages, not on when you deposit it. For example, if you

contributions to a sick-pay plan.

pay wages on March 29, your FUTA tax on those wages

10. Employer contributions to a SIMPLE retirement

is $200, and you deposit the $200 on April 30, you would

account (other than elective salary reduction

record that $200 in the first quarter, not in the second.

contributions) and employer contributions to a 401(k)

Example. You had two employees and paid each

plan (if included on line 1).

employee $4,000 in the first quarter, $5,000 in the

11. Employer payments to an Archer MSA.

second quarter, $5,000 in the third quarter, and $5,000 in

12. Benefits excludable under a section 125

the fourth quarter. (None of the payments were exempt

(cafeteria) plan.

from FUTA tax.) For the first quarter, multiply .008 x

13. Certain statutory employees. (See section 1 in

$8,000 (the amount paid to both employees), and enter

Pub. 15-A.)

$64 in the space for the first quarter. For the second

14. Services performed by an inmate of a penal

quarter, multiply .008 only by $6,000 ($3,000 for each

institution.

employee — the amount remaining to reach the $7,000

15. Employer reimbursements (including payments to a

maximum amount subject to FUTA tax for each

third party) for qualified moving expenses, to the extent

employee), and enter $48 in the space for the second

such expenses would otherwise be deductible by the

quarter. Because you paid each employee more than

employee. (See Pub. 521, Moving Expenses.)

$7,000 by the end of the second quarter, enter zero in

16. Any other exempt service or pay.

the space for the third and fourth quarters. Enter $112 in

For more information, see section 15 in Circular E

the “Total for year” space.

(Pub.15) or section 15 in Circular A (Pub. 51),

Third Party Designee. If you want to allow any

Agricultural Employer’s Tax Guide.

individual, corporation, firm, organization, or partnership

Line 3 — Payments of more than $7,000 for services.

to discuss your 2003 Form 940-EZ with the IRS, check

Enter the total of amounts over $7,000 you paid to each

the “Yes” box in the “Third Party Designee” section of

employee during 2003 after subtracting any exempt

the return. Also, enter the name, phone number, and any

payments shown on line 2. For example, you had 10

five numbers the designee chooses as his or her

employees and paid each $9,000 during the year,

personal identification number (PIN). The authorization

including $500 of exempt payments per employee. Enter

applies only to the tax form upon which it appears.

$15,000 on line 3, computed as follows:

By checking the “Yes” box, you are authorizing the

IRS to call the designee to answer any questions relating

Total payments (10 x $9,000) . . . . . . . . . . . . $90,000

to the information reported on your tax return. You are

also authorizing the designee to:

Less: Exempt payments (10 x $500) . . . . . . . ($5,000)

•

Exchange information concerning your tax return with

Less: Total wage base amount (10 x $7,000)

($70,000)

the IRS, and

•

Request and receive written tax return information

Amount reported on line 3 . . . . . . . . . . . . . $15,000

relating to your tax return including copies of specific

notices, correspondence, and account transcripts.

Only the first $7,000 paid to each employee is

You are not authorizing the designee to receive any

subject to FUTA tax. Do not use the state wage base

refund check, bind you to anything (including additional

for this entry. The state wage base may be different

tax liability), or otherwise represent you before the IRS. If

from the Federal wage base of $7,000. Do not include

you want to expand the designee’s authorization or

any exempt payments from line 2 in figuring the

desire automatic issuance of copies of notices, see

$7,000.

Publication 947, Practice Before the IRS and Power of

Line 8 — Balance due. Make your check or money

Attorney.

order payable to the “United States Treasury.” Write your

The Third Party Designee authorization automatically

EIN, “Form 940-EZ,” and “2003” on your check or money

expires one year from the due date (without regard to

order. Enter the amount of the payment on Form

extensions) for filing your 2003 Form 940-EZ. If you or

940-EZ(V) at the bottom of Form 940-EZ. If the employer

your designee desire to terminate the authorization, a

information is not preprinted on the payment voucher,

written statement conveying your wish to revoke the

enter the requested information. (Make certain that the

authorization should be submitted to the IRS Service

entity information above line A is properly completed.)

Center where the return was processed.

If the amount on line 8 is under $1, you do not have to

Signature. Form 940-EZ must be signed as follows:

pay it. For payments over $100, see Depositing FUTA

•

Sole proprietorship – The individual owning the

Tax on page 3.

business.

•

Corporation – The president, vice president, or other

Line 9 — Overpayment. If the amount on line 9 is

principal officer.

under $1, we will send a refund or apply it to your next

•

Partnership or unincorporated organization – A

return only on written request.

responsible and duly authorized member or officer having

Part II. Record of Quarterly Federal

knowledge of its affairs.

•

Single member limited liability company treated as

Unemployment Tax Liability

a disregarded entity –The owner of the limited liability

Complete this part only if your FUTA tax on line 6 is

company.

•

over $100. To figure your FUTA tax for each quarter,

Trust or estate – The fiduciary.

multiply by .008 that part of the first $7,000 of each

The return may also be signed by a duly authorized

employee’s annual wages you paid during the quarter.

agent of the taxpayer if a valid power of attorney has

Enter the result in the space for that quarter. Your “Total

been filed.

-5-

Instructions For Form 940-Ez - Employer'S Annual Federal Unemployment (Futa) Tax Return - Internal Revenue Service - 2003 Page 5

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