Get the free 940-EZ

This form is used to report the annual Federal Unemployment Tax Act (FUTA) tax owed by employers for compensation of employees who have lost their jobs, in conjunction with state unemployment systems.

How to fill out 940-ez

How to fill out 940-EZ

1. Gather necessary information such as your employer identification number (EIN), tax period, and total wages paid.
2. Complete the top section with your name, EIN, and address.
3. In Part 1, report the total wages subject to unemployment tax.
4. In Part 2, calculate the total unemployment tax due based on the wages reported.
5. Transfer any overpayment or balance due to the appropriate sections.
6. Sign and date the return, ensuring all information is accurate.
7. Submit the completed 940-EZ form to the IRS by the due date, either electronically or by mail.

Who needs 940-EZ?

1. Employers who paid wages to employees in the past year and are subject to federal unemployment tax.
2. Small businesses with an annual unemployment tax liability of $100 or less.
3. Employers who qualify to use Form 940-EZ instead of the longer Form 940.

People Also Ask about

How do you say 940 in English?

The number 940 in words can be expressed as Nine Hundred Forty.

Am I required to pay FUTA?

Employers must pay FUTA taxes if they pay wages of $1,500 or more to employees during any calendar quarter, or if they have at least one employee on payroll for at least part of the day for 20 weeks or more within a calendar year period.

Why is FUTA taken out of my paycheck?

California employers fund regular Unemployment Insurance (UI) benefits through contributions to the state's UI Trust Fund on behalf of each employee. They also pay Federal Unemployment Tax Act (FUTA) taxes to the federal government to help pay for: Administration of the UI program. UI loans to insolvent states.

Are 940 payments exempt from FUTA tax?

Understanding IRS Form 940 The form is a two-page return listing the total payments to all employees, reduced by any payments exempt from Federal Unemployment Tax (FUTA), such as certain fringe benefits, group term life insurance, and dependent care assistance.

Why is FUTA on my paycheck?

What is the purpose of FUTA taxes? As with all taxes, the goal of FUTA tax is to fund state or federal government spending programs. Specifically, FUTA funds a social welfare program called unemployment insurance, which offers temporary financial assistance to employees who have lost their jobs.

Why is so much federal tax being taken out of my paycheck?

The amount taken out is based on your gross income, your W-4 Form that describes your tax situation for your employer, and a variety of other factors. Other federal deductions pay for Social Security and Medicare, which are part of the federal benefit and health care systems for the aged and other groups.

Who can file an EZ tax form?

Form 1040EZ was a shortened version of Form 1040 for taxpayers with basic tax situations. The form was discontinued as of the 2018 tax year and replaced with the redesigned Form 1040. Form 1040EZ could only be used by people with no dependents who were younger than age 65 and earned less than $100,000 per year.

Who is required to file a form 940?

Each year, every business with employees must file Form 940 to compute the amount of unemployment tax that must be paid on the federal level. This payroll tax is based on the first $7,000 of each employee's wages (including owners of S corporations who receive a salary for work performed for their businesses).

What is Form 940 EZ?

Use Form 940 to report your annual Federal Unemployment Tax Act (FUTA) tax. Together with state unemployment tax systems, the FUTA tax provides funds for paying unemployment compensation to workers who have lost their jobs. Most employers pay both a federal and a state unemployment tax.

What is 940 EZ?

Use Form 940-EZ to report your annual Federal Unemployment Tax Act (FUTA) tax. FUTA tax, together with state unemployment systems, provides for payments of unemployment compensation to workers who have lost their jobs. Most employers pay both federal and state unemployment taxes. Only the employer pays FUTA tax.

For pdfFiller’s FAQs

What is 940-EZ?

940-EZ is a simplified version of the Form 940, which is used to report Annual Federal Unemployment Tax Act (FUTA) taxes.

Who is required to file 940-EZ?

Employers who have paid less than $1,000 in FUTA tax for the entire year and who meet certain other criteria are required to file Form 940-EZ.

How to fill out 940-EZ?

To fill out Form 940-EZ, employers need to complete the applicable sections, including reporting the total FUTA tax liability and making any necessary calculations for adjustments or credits.

What is the purpose of 940-EZ?

The purpose of Form 940-EZ is to simplify the filing process for certain qualified employers who owe minimal FUTA taxes, allowing them to report their tax liability with less complexity.

What information must be reported on 940-EZ?

Form 940-EZ requires information such as the employer's identification details, total payments, FUTA tax liability, and any adjustments for credits or overpayments.