The IRS form 940 is a required form for any business that has employees. If you own a business and you pay wages to your employees then you have to file IRS form 940 once a year. That goes for people who hire domestic help as well (people who work in your home). If a college club, sorority, fraternity or any other type of private home employs help in that house, then IRS form 940 is required.
WHAT IS irs FORM 940 FOR?
IRS form 940 is used for reporting and paying Federal Unemployment tax. This pays for our unemployment system, which compensates people who have lost their jobs. The Federal Unemployment system, together with the individual states’ unemployment systems, cover the part of the population who have lost their jobs. IRS form 940 covers the federal portion, which is funded by employers only. Employers do not take FUTA tax out of their employees’ paychecks.
The Federal unemployment tax rate is currently at 6.0% although it changed halfway through 2011, down from 6.2%.
Filw and Pay IRS Form 940 Electronically
You can pay your Federal Unemployment tax by credit card online after you have e-filed at IRS.gov.