Get the free 2015 940 form - irs

Hi welcome to easy payroll guide my name is Karen Hutchinson and in this video we're going to be completing the IRS form 940 this is the federal unemployment tax that is owed at the end of each year it's also known as futa which is the federal unemployment tax act we are going to complete the IRS 940 using a fictitious example this example kind of piggybacks off of the example that I did in my earlier video at the beginning of this page as we were calculating the food a liability we have three employees in this business and the employees are all paid wages that are taxable for food a' employee a is a resident of Maryland and has been paid a total wage of $16,000 employee B is a resident of Maryland as well and has been paid wages of $13,000 an employee's C is a resident of Delaware and has been paid total wages of $8,000 this is a total of 37 thousand dollars paid and wages I wanted to give you an example of a multi-state 940 as well so that's why I have one employee here who is a resident of Delaware so this means that the employer would be playing state unemployment taxes to Maryland and to Delaware for its respective employees so what this means is that I owe as the employer food or wages on the first twenty one thousand dollars because each of my employees have met the minimum requirement of or the maximum requirement of seven thousand so Fuda is paid on the first seven thousand dollars in wages for each employee since they all made over seven thousand dollars I'm responsible for paying the full amount of food a wage for each employee so that's twenty one thousand dollars seven thousand times three employees I have excess wages of sixteen thousand dollars if I take my total wages thirty-seven thousand and subtract my food Oh ages which is 21 thousand you'll see that I've paid excess wages of sixteen thousand these are the amount of wages that are not subject to food attacks because they these are the wages that are over the seven thousand dollar threshold for each employee so we're going to use this information to complete the IRS form 940 now the beginning of the 940 the top portion is your business information you would complete this with all of the information for your particular business and you won't really probably need to check anything in this box unless you're amending or you're completing closing your business and this is your final 940 if you did not make any payments to employees and you still need to file this return and you'll want to check box C so we're going to start with Part one and Part one says that if you had to pay state unemployment tax in only one state then you would enter the state abbreviation and 1a so if all of my employees were from Maryland then I would enter MD for Maryland's here but since I have an employee from Delaware I am considered a multi-state employer so that means that for line B I'm gonna check the box because I'm a multi-state employer which means that I've employed employees from more than one...