What is a 940?
Form 940 is an annual report of FUTA (Federal Unemployment Tax Act) taxes paid by employers to the IRS. This provides funds (in conjunction with state unemployment tax systems) to pay unemployment compensation to workers who have lost their jobs.
Why do I file 940?
940 forms must be filed to ensure that you are complying with government rules and regulations. Penalties and interest can be incurred by the employer for not properly filing 940 forms.
Who needs to file 940?
Employers that answer yes to either of the questions below have to pay on the first $7000 of wages paid to each employee. See the official IRS instructions.
- Did you pay wages of $1,500 or more to employees in any calendar quarter during 2016 or 2017?
- Did you have one or more employees for at least some or part of a day in any 20 or more different weeks in 2016 or 20 or more different weeks in 2017? Count all full-time, part-time, and temporary employees.
How do I get a 940 PIN?
The IRS requires a PIN number to e-file 940 forms. Apply for one directly through Yearli for free! Simply log-in or create an account, then go to the "Start New Forms" area within Your Filing Home. From there, you can then follow the steps to complete the Employer PIN Application.
What to report
- Wages paid
- Adjustments for state exclusions (if applicable)
- FUTA liabilities by quarter
- FUTA liabilities deposits
- EIN (Employer ID Number)
- PIN (Personal ID Number)