Form 940 Instructions

Use a Form 940 Instructions 2011 template to make your document workflow more streamlined.

What Form 940 Instructions covers

Form 940 Instructions explains how employers complete Form 940, the Employer’s Annual Federal Unemployment Tax Return, for reporting federal unemployment tax under the Federal Unemployment Tax Act. It guides employers through employer identification details, FUTA-taxable wages, adjustments, credits, liability calculations, payments, and signature requirements. The instructions also explain which employers must file, how to report state unemployment contributions, and where to submit the return. signNow can help prepare the document, route required signatures, and preserve the completed record, but IRS filing obligations remain with the employer.

Structured preparation

Prepare employer and business information in one controlled document workflow, reducing transcription between the Form 940 worksheet, signature fields, and retained copy.

Signature routing

Route the completed Form 940 to an authorized company representative for review and signature without relying on separate email attachments.

Audit trail

Capture signer identity, timestamps, and document activity in an audit trail that supports the organization’s recordkeeping process.

Reusable template

Use reusable fields and templates for recurring annual Form 940 preparation while reviewing each year’s tax data before sending.

Record retention

Keep the signed Form 940, completion certificate, and related workflow evidence together for future tax-record retrieval.

Controlled access

Protect access to the employer’s tax information with controlled permissions and signNow security features appropriate to the organization’s policy.

How to prepare Form 940 online

Follow the IRS instructions while using signNow to prepare, route, sign, and retain the Form 940 record.

Review employer data:
Confirm employer details and filing status before entering wage information.
Upload and check:
Upload the Form 940 document and verify detected fields against the IRS instructions.
Complete tax fields:
Enter FUTA wages, adjustments, credits, and liability figures from payroll records.
Route for signature:
Assign the authorized representative, send the form, and monitor signature completion.
Store the record:
Download the signed return and completion record for the employer’s files.

Setting	Recommendation
Authentication and provisioning	Use role-based access with two-factor authentication
Signature type	Use an electronic signature with clear intent
Audit trail	Retain the completion certificate and activity log
Document retention	Keep records under the employer’s IRS policy
Encryption	Use TLS in transit and AES-256 at rest

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Authenticate signer:

Authentication records the method used to verify the authorized Form 940 signer.

Capture timestamps:

Timestamp capture records when each review and signature action occurred.

Hash document:

Document hashing helps detect changes to the completed Form 940.

Seal record:

Tamper-evident sealing links the final document to its completion evidence.

Preserve activity:

The audit trail preserves signer actions, access events, and workflow history.

Export evidence:

Authorized users can retrieve or export the completion evidence with the signed return.

Authentication for Form 940 records

PKI certificates:

PKI support for certificate-based signing

X.509 identity:

X.509 certificates identify certificate-based signers

Two-factor authentication:

Two-factor authentication adds a second verification step

SMS OTP:

SMS OTP confirms access to the signer’s phone

ID verification:

ID verification strengthens signer identity checks

Signing evidence:

Audit evidence records signing activity and timestamps

Find and fill out the correct 2011 form 940 instructions

airSlate SignNow helps you fill in and sign documents in minutes, error-free. Choose the correct version of the editable PDF form from the list and get started filling it out.

Versions	Form popularity	Fillable & printable
IRS Instructions 940 2024	4.8 Satisfied (71 Votes)
IRS Instructions 940 2022	4.8 Satisfied (1491 Votes)
IRS Instructions 940 2021	4.8 Satisfied (1491 Votes)
IRS Instructions 940 2020	4.8 Satisfied (1728 Votes)
IRS Instructions 940 2018	4.8 Satisfied (2289 Votes)
IRS Instructions 940 2017	4.7 Satisfied (768 Votes)

Prepare the return

Check the current IRS Form 940 instructions and reconcile payroll data before entering figures.

Deliver to signer

Send the completed document to the authorized representative after reviewing required fields.

Complete signer review

The signer reviews the employer data and tax entries before applying an electronic signature.

Archive the record

Download the signed Form 940 and completion evidence, then retain them under the applicable tax-record policy.

Form 940 record retention periods

Retain the signed return and supporting evidence under the applicable federal tax period, while checking state requirements for longer obligations.

3 years from filing

Keep federal employment-tax records for 3 years from filing under IRC §6501(a), unless a longer period applies.

6 years for understatement

Keep records for 6 years when 25% or more of income is understated under IRC §6501(a).

Indefinite for fraud

Retain records indefinitely when fraud is involved under IRC §6501(a).

Indefinite without filing

Retain records indefinitely when no return is filed under IRC §6501(a).

Longer applicable period

Apply a longer state or industry period when another binding recordkeeping rule governs the employer.

Form 940 preparation challenges

Entering the wrong FUTA-taxable wage amount can distort the tax calculation and require correction before the return is filed.
Failing to reconcile state unemployment contributions can affect the credit reported on Form 940 and the resulting federal liability.
Sending the return to an unauthorized signer weakens internal controls and may delay approval of the employer’s tax filing.
Keeping only the signed PDF without its completion evidence can make later review of signing activity more difficult.

Form 940 compliance risks

Incorrect tax data

Late filing

Late or missing return

Unsupported credit

Unsupported credit claim

Weak evidence

Weak signing evidence

Best practices for Form 940

Accurate payroll reconciliation, controlled routing, and documented retention help keep the Form 940 workflow aligned with IRS recordkeeping responsibilities.

Reconcile payroll figures before sending

Compare every entered amount with payroll and unemployment-tax records before sending Form 940. Recheck employer identification information, taxable wages, state contributions, credits, adjustments, and calculated liability so the authorized signer reviews a coherent return rather than correcting data during signature.

Review the template each filing year

Use a controlled Form 940 template only as a starting point. Review the current IRS instructions each filing year, remove outdated fields, confirm attachments, and restrict editing permissions so payroll staff can prepare the return while the authorized representative retains final approval.

Route the return to an authorized signer

Send Form 940 only to the designated company representative after confirming the signer’s role. Use signNow authentication and a documented routing process, especially when payroll preparation and tax-return approval are handled by different people.

Preserve the signed return and evidence

Download the signed Form 940 together with its completion evidence and store both under the employer’s tax-record policy. Apply IRC §6501(a) periods when relevant, including three years from filing and longer periods for substantial understatement, fraud, or nonfiling.

Form 940 troubleshooting questions

These answers address preparation, signing, plan selection, and retention questions specific to Form 940 workflows.

Form 940 is an annual employer federal unemployment tax return, not a general agreement. Upload the current return and instructions, then verify every employer, wage, credit, and liability field before sending it through signNow. The platform manages document workflow; the IRS remains the filing authority.

Yes, an authorized representative can generally use an electronic signature when the organization demonstrates intent, consent, attribution, and reliable record reproduction under ESIGN and applicable state law. Confirm that the IRS filing channel accepts the completed document and follow its submission requirements separately from signNow signing.

Use signNow’s field-detection and document editor to inspect the uploaded Form 940 rather than trusting automated placement. Compare detected fields with the printed form, including employer identity, tax figures, signature areas, and any schedules or attachments required by the IRS instructions.

Business is listed at $8 per user per month with annual billing, and includes legally binding eSignatures, audit trails, templates, mobile apps, ISO 27001, SOC 2, and GDPR. The plan includes 100 signature invites per user per year; confirm current overage terms before large filing programs.

Use Business Premium when bulk send is required for repeated Form 940 workflows. It is listed at $15 per user per month with annual billing and adds bulk send, kiosk mode, request payments, and quick invite links. Review each return individually before sending.

Form 940 records may contain employer tax and payroll information, so limit access to authorized personnel and preserve the signed document with its audit trail. IRS recordkeeping duties remain separate from signNow’s storage; retain records according to the applicable IRS rule and business policy.

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