Get the free Form 940–EZ

Use this form to report your annual Federal Unemployment Tax Act (FUTA) tax, which helps provide unemployment compensation to workers who lost their jobs. It outlines who may use Form 940-EZ and provides

How to fill out form 940ez

How to fill out Form 940–EZ

1. Gather required information, including your business's name, address, and Employer Identification Number (EIN).
2. Confirm your eligibility to use Form 940–EZ by checking if you meet the criteria for the simplified version.
3. Complete the identification section at the top of the form with your details.
4. Fill out Part 1 for your wage payments and federal unemployment tax liability.
5. Calculate your total taxable wages and any adjustments necessary.
6. Complete Part 2 to determine your tax liability and any credits you may claim.
7. Sign and date the form, ensuring you include your title if you are an authorized agent.
8. Submit the form by mail to the address listed in the form instructions or electronically if permitted.

Who needs Form 940–EZ?

1. Employers who paid wages subject to Federal Unemployment Tax Act (FUTA) and have a minimal tax liability.
2. Businesses that meet eligibility criteria to file the simplified Form 940–EZ instead of the longer Form 940.

People Also Ask about

Who is exempt from FUTA tax?

An employer is exempt from paying FUTA only if they have paid an employee less than $1,500 in wages during a calendar quarter, or if they haven't had an employee for 20 weeks or more within a calendar year.

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.

Can I print Form 940?

To print Form 940 Information can be edited on the IRS Form 940 screen before printing the form. Once the information on this screen is correct, click Print.

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.

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.

Can I file Form 940 electronically?

Modernized e-file (MeF) for employment taxes offers a secure and accurate way to file the following forms electronically: Form 940, Employer's Annual Federal Unemployment Tax Return. Form 940 (PR), Employer's Annual Federal Unemployment Tax Return.

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.

For pdfFiller’s FAQs

What is Form 940–EZ?

Form 940–EZ is a simplified version of Form 940 used by employers to report their annual Federal Unemployment Tax Act (FUTA) tax liability.

Who is required to file Form 940–EZ?

Employers who have paid $1,500 or more in wages and have had one or more employees during any part of the year are required to file Form 940–EZ.

How to fill out Form 940–EZ?

To fill out Form 940–EZ, employers need to provide their basic business information, total wages paid, and calculate the total FUTA tax due using the simplified form sections.

What is the purpose of Form 940–EZ?

The purpose of Form 940–EZ is to streamline the reporting process for eligible employers who meet certain criteria to report their FUTA tax responsibilities.

What information must be reported on Form 940–EZ?

Form 940–EZ requires employers to report total wages subject to FUTA tax, the total FUTA tax liability, any adjustments, and the balance due or overpaid amounts for the tax year.