Table of Contents
Future developments.
The IRS has created a page on IRS.gov for information about Form 940, at
www.irs.gov/form940. Information about any future developments affecting Form 940 (such as legislation enacted after we release it) will be posted on that page.
www.irs.gov/form940. Information about any future developments affecting Form 940 (such as legislation enacted after we release it) will be posted on that page.
FUTA tax rate.
The FUTA tax rate was 6.2% from January 1, 2011, through June 30, 2011 (quarters 1 and 2), and decreased to 6.0% July
1, 2011, through December 31, 2011 (quarters 3 and 4). Visit IRS.gov for updated information.
Electronic deposit requirement.
You must deposit all depository taxes (such as employment tax, excise tax, and corporate income tax) electronically
using the Electronic Federal Tax Payment System (EFTPS). For more information about EFTPS or to enroll in EFTPS, visit the
EFTPS website at www.eftps.gov, or call 1-800-555-4477. You can also get Pub. 966, The Secure Way to Pay Your Federal Taxes.
Credit reduction state.
A state that has not repaid money it borrowed from the federal government to pay unemployment benefits is a “credit reduction state.” The Department of Labor determines these states. If an employer pays wages that are subject to the unemployment tax laws
of a credit reduction state, that employer must pay additional federal unemployment tax when filing its Form 940.
For 2011, there are credit reduction states. If you paid any wages that are subject to the unemployment compensation
laws of any of these states, you are not allowed the credit reduction rate (i.e., .003 or .006) of the regular .054 credit
for the credit reduction state. Use Schedule A (Form 940), to figure the tax. For more information, see the Multi-State Employer
and Credit Reduction Information, Instructions for Schedule A (Form 940) or visit IRS.gov.
Change of address.
Beginning in 2012, employers must use new Form 8822-B, Change of Address—Business, for any address change.
Aggregate Form 940 filers.
Agents must complete Schedule R (Form 940), Allocation Schedule for Aggregate Form 940 Filers when filing an aggregate
Form 940. Aggregate Forms 940 are filed by agents of home care service recipients approved by the IRS under section 3504 of
the Internal Revenue Code. To request approval to act as an agent for an employer, the agent must file Form 2678, Employer/Payer
Appointment of Agent, with the IRS unless you are a state or local government agency acting as agent under the special procedures
provided in Notice 2003-70.
Disregarded entities and qualified subchapter S subsidiaries (Qsubs).
Business entities that are disregarded as separate from their owner, including qualified subchapter S subsidiaries,
are required to withhold and pay employment taxes and file employment tax returns using the name and EIN of the disregarded
entity. For more information, see Disregarded entities.
State unemployment information.
You are no longer required to list your state reporting number(s) on Form 940. When you registered as an employer
with your state, the state assigned you a state reporting number. If you do not have a state unemployment account and state
experience tax rate, or if you have questions about your state account, you must contact your state unemployment agency. A
contact list (for general information only) of state unemployment tax agencies is provided at the end of these instructions.
You can file and pay electronically.
Using electronic options available from the Internal Revenue Service (IRS) can make filing a return and paying your
federal tax easier. You can use IRS e-file to file a return and EFTPS to make deposits or pay in full whether you rely on a tax professional or prepare your own taxes.
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For IRS e-file, visit IRS.gov for additional information.
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For EFTPS, visit www.eftps.gov, or call EFTPS Customer Service at 1-800-555-4477, 1-800-733-4829 (TDD), or 1-800-244-4829 (Spanish).
Electronic funds withdrawal (EFW).
If you file Form 940 electronically, you can e-file and e-pay (electronic funds withdrawal) the balance due in a single
step using tax preparation software or through a tax professional. However, do not use EFW to make federal tax deposits. For more information on paying your taxes using EFW, visit the IRS website at IRS.gov/e-pay. A fee may be charged to file electronically.
You can pay your balance due by credit or debit card.
You may pay your FUTA tax shown on line 14 using a major credit card or debit card. However, do not use a credit or debit card to pay taxes that are required to be deposited or (see When Must You Deposit Your FUTA Tax?) For more information on paying your taxes with a credit or debit card, visit the IRS website at IRS.gov/e-pay.
Photographs of missing children.
The IRS is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children
selected by the Center may appear in instructions on pages that would otherwise be blank. You can help bring these children
home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.
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