Table of Contents

• Instructions for Form 940 - Introductory Material
  • What's New
    • Reminders
    • How Can You Get More Help?
• General Instructions: Understanding Form 940
  • What's the Purpose of Form 940?
  • Who Must File Form 940?
    • For employers of household employees . . .
    • For agricultural employers . . .
    • For Indian tribal governments . . .
    • For tax-exempt organizations . . .
    • For employers of state and local government employees . . .
  • When Must You File Form 940?
  • Where Do You File?
  • Credit for State Unemployment Tax Paid to a State Unemployment Fund
  • When Must You Deposit Your FUTA Tax?
  • How Do You Figure Your FUTA Tax Liability for Each Quarter?
    • Figure your tax liability
  • How Must You Deposit Your FUTA Tax?
    • You may deposit your FUTA tax using EFTPS
  • How Can You Avoid Penalties and Interest?
  • How Can You Amend a Return?
  • Completing Your Form 940
    • Follow these guidelines to correctly fill out the form.
  • Employer Identification Number (EIN), Name, Trade Name, and Address
    • Review your business information at the top of the form
    • Tell us if you change your name or address
  • Type of Return
• Specific Instructions
  • Part 1:Tell Us About Your Return
    • 1.If you were required to pay your state unemployment tax in …
    • 2.If you paid wages in a state that is subject to credit reduction . . .
  • Part 2:Determine Your FUTA Tax Before Adjustments for 2007
    • 3.Total payments to all employees
    • 4.Payments exempt from FUTA tax
    • 5.Total of payments made to each employee in excess of $7,000
    • 6. Subtotal
    • 7. Total taxable FUTA wages
    • 8. FUTA tax before adjustments
  • Part 3:Determine Your Adjustments
    • 9.If ALL of the FUTA wages you paid were excluded from state unemployment tax. . .
    • 10.If SOME of the taxable FUTA wages you paid were excluded from state unemployment tax, OR you paid ANY state unemployment tax late
    • 11.If credit reduction applies . . .
  • Part 4:Determine Your FUTA Tax for 2007
    • 12.Total FUTA tax after adjustments
    • 13.FUTA tax deposited for the year
    • 14.Balance due
    • 15.Overpayment
  • Part 5: Report Your FUTA Tax Liability by Quarter Only if Line 12 Is More Than $500
    • 16.Report the amount of your FUTA tax liability for each quarter
    • 17.Total tax liability for the year
  • Part 6: May We Speak With Your Third-Party Designee?
  • Part 7: Sign Here
    • You MUST fill out both pages of the form and SIGN it.
    • Who must sign Form 940?
  • Part 8: For Paid Preparers Only (optional)
• Instructions for Form 940 - Notices
  • How to Order Forms and Publications from IRS