Instructions For Form 940 - 2016 printable pdf download

2016

Department of the Treasury

Internal Revenue Service

Instructions for Form 940

Employer's Annual Federal Unemployment (FUTA) Tax Return

Section references are to the Internal Revenue Code unless

act as an agent for an employer, the agent files Form 2678 with

otherwise noted.

the IRS unless you’re a state or local government agency acting

as an agent under the special procedures provided in Rev. Proc.

Future Developments

2013-39, 2013-52 I.R.B. 830, available at

2013-52_IRB/ar15.html.

For the latest information about developments related to Form

Disregarded entities and qualified subchapter S subsidia

940 and its instructions, such as legislation enacted after they

ries (QSubs). Business entities that are disregarded as

were published, go to

separate from their owner, including qualified subchapter S

subsidiaries, are required to withhold and pay employment taxes

What's New

and file employment tax returns using the name and EIN of the

disregarded entity. For more information, see Disregarded

entities, later.

Credit reduction state. A state that hasn't repaid money it

borrowed from the federal government to pay unemployment

State unemployment information. When you registered as an

benefits is a “credit reduction state.” The Department of Labor

employer with your state, the state assigned you a state

determines these states. If an employer pays wages that are

reporting number. If you don't have a state unemployment

subject to the unemployment tax laws of a credit reduction state,

account and state experience tax rate, or if you have questions

that employer must pay additional federal unemployment tax

about your state account, you must contact your state

when filing its Form 940.

unemployment agency. For a list of state unemployment

For 2016, there are credit reduction states. If you paid any

agencies, visit the U.S. Department of Labor's website at

wages that are subject to the unemployment compensation laws

of a credit reduction state, your credit against federal

You can file and pay electronically. Using electronic options

unemployment tax will be reduced based on the credit reduction

can make filing a return and paying your federal tax easier. You

rate for that credit reduction state. Use Schedule A (Form 940) to

can use IRS e-file to file a return and EFTPS to make deposits or

figure the credit reduction. For more information, see the

pay in full whether you rely on a tax professional or prepare your

Schedule A (Form 940) instructions or visit IRS.gov.

own taxes.

Reminders

For e-file, visit the IRS website at

employmentefile

for additional information.

If you change your business name, business address, or

For EFTPS, visit , or call EFTPS Customer

responsible party. Notify the IRS immediately if you change

Service at 1-800-555-4477, 1-800-733-4829 (TDD), or

your business name, business address, or responsible party.

1-800-244-4829 (Spanish).

Write to the IRS office where you file your returns (using the

Electronic funds withdrawal (EFW). If you file Form 940

Without a payment address under Where Do You File, later) to

electronically, you can e-file and e-pay (EFW) the balance due in

notify the IRS of any business name change. See Pub. 1635 to

a single step using tax preparation software or through a tax

see if you need to apply for a new EIN.

professional. However, don't use EFW to make federal tax

Complete and mail Form 8822-B to notify the IRS of a

deposits. For more information on paying your taxes using EFW,

business address or responsible party change. Don’t mail Form

visit the IRS website at payments. A fee may be

8822-B with your Form 940. For a definition of “responsible

charged to file electronically.

party” see the Form 8822-B instructions.

You can pay your balance due by credit or debit card. You

Federal tax deposits must be made by electronic funds

may pay your FUTA tax shown on line 14 using a credit or debit

transfer (EFT). You must use EFT to make all federal tax

card. However, don't use a credit or debit card to pay taxes that

deposits. Generally, an EFT is made using the Electronic

are required to be deposited (see When Must You Deposit Your

Federal Tax Payment System (EFTPS). If you don't want to use

FUTA Tax, later). For more information on paying your taxes with

EFTPS, you can arrange for your tax professional, financial

a credit or debit card, visit the IRS website at

institution, payroll service, or other trusted third party to make

payments.

electronic deposits on your behalf. Also, you may arrange for

your financial institution to initiate a same-day wire payment on

Online payment agreement. You may be eligible to apply for

your behalf. EFTPS is a free service provided by the Department

an installment agreement online if you have a balance due when

of Treasury. Services provided by your tax professional, financial

you file your return. For more information, see What if you can't

institution, payroll service, or other third party may have a fee.

pay in full, later.

For more information on making federal tax deposits, see

Outsourcing payroll duties. You’re responsible to ensure that

section 11 of Pub. 15. To get more information about EFTPS or

tax returns are filed and deposits and payments are made, even

to enroll in EFTPS, visit , or call 1-800-555-4477,

if you contract with a third party to perform these acts. You

1-800-733-4829 (TDD), or 1-800-244-4829 (Spanish). Additional

remain responsible if the third party fails to perform any required

information about EFTPS is also available in Pub. 966.

action. If you choose to outsource any of your payroll and related

tax duties (that is, withholding, reporting, and paying over social

Aggregate Form 940 filers. Agents must complete

security, Medicare, FUTA, and income taxes) to a third-party

Schedule R (Form 940), Allocation Schedule for Aggregate

payer, such as a payroll service provider or reporting agent, visit

Form 940 Filers, when filing an aggregate Form 940. Aggregate

IRS.gov and enter “outsourcing payroll duties” in the search box

Forms 940 are filed by agents of home care service recipients

for helpful information on this topic.

approved by the IRS under section 3504. To request approval to

Oct 31, 2016

Cat. No. 13660I

Instructions For Form 940 - 2016

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