Tax Topics - Topic 759 Form 940 – Employer's Annual Federal Unemployment

(FUTA) Tax Return – Filing and Deposit Requirements
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Internal Revenue Service United States Department of the Treasury
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*Topic 759 - Form 940 – Employer's Annual Federal Unemployment (FUTA) Tax
Return – Filing and Deposit Requirements*


*Who Must File Form 940?*

Most employers pay both a federal (FUTA) and a state unemployment tax.
There are three tests used to determine whether you must pay FUTA tax: a
general test, household employees test, and farmworkers employees test.

Under the *general test*, you are subject to FUTA tax on the wages you pay
employees who are not household or agricultural employees and must file
Form 940 (PDF), //Employer's Annual Federal Unemployment (FUTA) Tax
Return//, for 2015 if:

· You paid wages of $1,500 or more to employees in any calendar quarter
during 2014 or 2015, or
· You had one or more employees for at least some part of a day in any 20
or more different weeks in 2014 or 20 or more different weeks in 2015.
Count all full-time, part-time, and temporary employees. However, if your
business is a *partnership*, do not count its partners.

If you sold or transferred your business during the year, and one of the
conditions above applies, you must file Form 940. However, do not include
any wages paid by the predecessor employer on your Form 940 unless you are
a successor employer. For details, see "Successor employer" in the Form 940
Instructions (PDF). If you will not be liable for filing Form 940 in the
future, see "Final: Business closed or stopped paying wages" under //Type
of Return// in the Form 940 Instructions (PDF).

For the *household employees* and *farmworkers tests*, see Chapter 14 in
Publication 15, //(Circular E)


Source: www.irs.gov/taxtopics/tc759.html


when is form 940 due

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