2017-2024 Form

What Is IRS Form 940

Form 940 is known as an employee’s federal unemployment return. This document is completed by employers to make tax payment for their employees. To know whether or not you have to pay this tax, you need to count the sum you pay for each quarter. If it is more than one thousand and five hundred dollars, then you will have to complete this template.

Those payments are very important because they help to compensate for unemployment benefits in a situation when an individual can no longer work or find a job. The rate is 6% of the first seven thousand dollars of wages. Almost five and a half percent go to the state where you have a business. A little more than a half of a percent goes to compensate the Federal Unemployment Tax Return. That is why you need to provide the correct abbreviation for the state in which your business operates. If you make a mistake, the money could be transferred to the wrong place, or you may have to fill out a new blank.

Complete Form 940 Digitally

Using airSlate SignNow’s tools, anyone can fill out and sign documents electronically in a few simple steps:

1. Indicate the general information near the top of form 940. You will want to include your EIN, full name, company name, postal address, and the type of return.
2. Next, indicate the number of states where your business operates.
3. The next part includes the total and detailed FUTA wages and adjustments.
4. Indicate the fee you paid for each quarter in the year.
5. The Internal Revenue Service needs to discuss a template with a third party in some cases. If you agree to that, type in the name and contacts of individuals, connected with the sample.
6. Finally, add your name, the current date and perfect signature for your name.
7. Save the changes made in the 940 IRS form and send your document by e-mail.