Form 940, officially known as the Employer’s Annual Federal Unemployment (FUTA) Tax Return, is a crucial IRS form for businesses across the United States. Employers use this form to report their annual Federal Unemployment Tax Act (FUTA) tax liability. Understanding the intricacies of Form 940, including where to send it, is essential for compliance and avoiding penalties.
This guide provides a detailed overview of Form 940, focusing on the key question: Where Do I Send My 940 form? We will also cover important aspects such as filing methods, deadlines, and frequently asked questions to ensure you have a complete understanding of your Form 940 obligations.
To properly understand Form 940, let’s break down its key components. The form is structured into several parts, each addressing specific aspects of FUTA tax calculation and reporting:
| Line | Description |
|---|---|
| Part 1 | 1a |
| 1b* | Indicates if SUI was paid in multiple states. Requires Schedule A. |
| 2* | Identifies if SUI was paid in a state with a credit reduction. Requires Schedule A. |
| Part 2 | 3 |
| 4 | FUTA-exempt payments (e.g., fringe benefits, retirement matching). |
| 5 | Wages paid above individual employee wage base limits. |
| 6 | Sum of Line 4 and Line 5. |
| 7 | FUTA taxable wages (Line 3 minus Line 6). |
| 8 | Pre-adjusted FUTA tax (Line 7 multiplied by applicable tax rate, 0.6% to 6%). |
| Part 3 | 9 |
| 10 | Adjusted FUTA tax if some of Line 7 was excluded from SUI or SUI was paid late. Refer to Worksheet Line 10 Instructions. |
| 11 | Total from Form 940 Schedule A (if applicable). |
| Part 4 | 12 |
| 13 | Total FUTA tax deposited for the year, including prior year overpayments. |
| 14** | Balance of FUTA tax owed (Line 12 minus Line 13). Pay ASAP if over $500. |
| 15 | Overpayment of FUTA tax (Line 13 minus Line 12). |
| Part 5 | 16a – 16c |
| 16d | FUTA tax owed for the fourth quarter (Line 12 minus sum of Lines 16a–16c). |
| 17 | Total FUTA tax owed (sum of Lines 16a–16d). Must match Line 12. |
| Part 6 | N/A |
| Part 7 | N/A |
*Schedule A required for these lines.
** Balance over $500 must be paid promptly.
Filing Your Form 940: Electronic vs. Mail Submission
When it comes to submitting your Form 940, the IRS provides two primary methods: electronic filing and mail submission. The IRS generally prefers and encourages electronic filing as it is more efficient and reduces processing time.
Electronic Filing:
E-filing Form 940 is often the most convenient and fastest way to submit your return. The IRS accepts Form 940 electronically through authorized IRS e-file providers. You can find a list of providers on the IRS website. Using e-file ensures that your form is received promptly and reduces the chances of errors associated with manual data entry.
Mail Submission: Where Do I Send My 940 by Mail?
While electronic filing is preferred, you can still submit Form 940 via mail. The mailing address for Form 940 depends on your state. It’s crucial to send your form to the correct address to avoid processing delays.
You must use the correct address for your location. Find the appropriate address based on your primary business location from the IRS instructions for Form 940. Always refer to the official IRS Form 940 instructions for the most up-to-date mailing addresses. As addresses can change, relying on the most recent IRS guidelines is essential.
Amending Form 940: A Separate Process
If you need to correct errors on a previously filed Form 940, you will need to amend your return. To amend Form 940, you must use the correct version of the form for the tax year you are amending. For example, to amend a 2023 return, you must use the 2023 Form 940.
The process for amending Form 940 involves:
- Completing the Corrected Form: Fill out the Form 940 with the accurate information.
- Marking as Amended: Check the “Amended” box in the “Type of Return” section of the form.
- Providing an Explanation: Include a brief explanation of the changes you are making.
- Mailing the Amended Return: Amended Form 940 returns must be submitted via mail, even if your original return was filed electronically. Use the appropriate mailing address as per IRS instructions for amended returns.
Form 940 Due Date: Mark Your Calendar
Form 940 is an annual return, and the standard due date is January 31st of the year following the calendar year for which you are reporting FUTA taxes.
For instance, the Form 940 for the 2024 tax year is generally due by January 31, 2025.
Extension Exception: You may receive an extension to file Form 940 if you have deposited all your FUTA tax liabilities on time throughout the year. In such cases, you have until February 10th to file. However, timely quarterly FUTA tax deposits are crucial for this extension.
Form 940 FAQs: Quick Answers to Common Questions
To further clarify Form 940 and related aspects, here are answers to some frequently asked questions:
What is the Penalty for Filing Form 940 Late?
The IRS imposes penalties for late filing and late payment of taxes. The Failure-to-File (FTF) penalty is 5% of the unpaid tax for each month or part of a month the return is late, with a maximum penalty of 25% of the total unpaid tax. Filing and paying on time is crucial to avoid these penalties.
What is Form 940 Schedule R?
Form 940 Schedule R, or Allocation Schedule for Aggregate Form 940 Filers, is used by Certified Professional Employer Organizations (CPEOs) and designated agents. It’s used to report and allocate FUTA tax liability when filing an aggregate Form 940 for multiple employers. If you are not a CPEO or designated agent, you likely will not need to file Schedule R.
How Often is FUTA Tax Due?
While Form 940 is filed annually, FUTA taxes are deposited quarterly. Deposits are generally due by the last day of the month following the end of each quarter:
- Quarter 1 (Jan 1 – Mar 31): Due April 30
- Quarter 2 (Apr 1 – Jun 30): Due July 31
- Quarter 3 (Jul 1 – Sep 30): Due October 31
- Quarter 4 (Oct 1 – Dec 31): Due January 31
In Conclusion
Understanding where to send your 940 form, along with deadlines and filing requirements, is vital for every US employer. Whether you choose to file electronically for speed and efficiency or by mail to the correct IRS address, ensure you adhere to the guidelines outlined in the official IRS instructions. Staying compliant with FUTA tax obligations helps businesses avoid penalties and maintain good standing with the IRS. Always consult the latest IRS resources or a tax professional for specific guidance related to your business’s tax obligations.
