Form 940

What is the Form 940

The 2011 Form 940, also known as the Employer's Annual Federal Unemployment (FUTA) Tax Return, is a crucial document for employers in the United States. This form is used to report and pay unemployment taxes to the federal government. Employers are required to file this form annually if they paid wages of $1,500 or more in any calendar quarter or had at least one employee for a day in any 20 or more weeks during the year. The form helps ensure that employers contribute to the federal unemployment insurance program, which provides benefits to unemployed workers.

Steps to complete the Form 940

Completing the 2011 Form 940 involves several key steps to ensure accurate reporting of unemployment taxes. First, gather all necessary payroll records, including total wages paid and the number of employees. Next, follow these steps:

• Enter your business information, including name, address, and Employer Identification Number (EIN).
• Calculate the total wages subject to FUTA tax for the year.
• Determine the amount of FUTA tax owed, which is typically 6% of the first $7,000 paid to each employee.
• Account for any credits you may be eligible for, such as state unemployment tax credits.
• Complete the form by providing total tax liability and any payments made throughout the year.
• Sign and date the form before submitting it to the IRS.

Filing Deadlines / Important Dates

The filing deadline for the 2011 Form 940 is January 31 of the year following the tax year being reported. If you have made timely payments of your FUTA tax, you may be eligible for an extension until February 10. It is essential to adhere to these deadlines to avoid penalties and interest charges. Additionally, if you are required to file Form 940 and fail to do so on time, you may face significant penalties based on the amount of tax owed.

Legal use of the Form 940

The 2011 Form 940 is legally binding when filed correctly and on time. Employers must ensure that all information provided is accurate and complete to comply with IRS regulations. Electronic filing is permitted and often recommended for efficiency and ease of tracking. To maintain legal validity, employers should retain copies of the submitted form and any supporting documentation for at least four years, as the IRS may request this information during audits.

Key elements of the Form 940

Several key elements must be included in the 2011 Form 940 to ensure its proper completion. These elements include:

• Employer's name, address, and EIN.
• Total wages subject to FUTA tax.
• FUTA tax calculation, including any credits claimed.
• Payments made towards FUTA tax throughout the year.
• Signature of the employer or authorized representative.

Form Submission Methods (Online / Mail / In-Person)

The 2011 Form 940 can be submitted in various ways, providing flexibility for employers. The available submission methods include:

• Online: Employers can file electronically using the IRS e-file system, which is often faster and more secure.
• Mail: The completed form can be mailed to the appropriate IRS address, depending on the employer's location.
• In-Person: Although less common, some employers may choose to deliver the form in person to their local IRS office.