As a responsible citizen, it is essential to file your taxes accurately and on time. The 940 form is a crucial document for employers to report their annual Federal Unemployment Tax Act (FUTA) tax. In this article, we will guide you through the process of completing the 940 form for 2017, highlighting the essential steps and providing practical examples to make the task more manageable.
What is the 940 Form?
The 940 form is used by employers to report their FUTA tax, which is used to fund state unemployment insurance programs. The form is due annually, and employers must file it by January 31st of each year. The 940 form requires employers to provide information about their business, including the number of employees, wages paid, and FUTA tax deposited.
Understanding the 940 Form Structure
Before we dive into the steps to complete the 940 form, it is essential to understand the structure of the document. The 940 form consists of several sections, including:
- Part 1: Answer questions about your business
- Part 2: Report your FUTA tax
- Part 3: Report your FUTA tax deposits
- Part 4: Report your FUTA tax liability
- Part 5: Sign and date the form
Step 1: Gather Required Information
To complete the 940 form, you will need to gather the following information:
- Your business's Employer Identification Number (EIN)
- Your business's name and address
- The number of employees you had during the year
- The total wages you paid during the year
- The FUTA tax deposited during the year
- The FUTA tax liability for the year
Step 2: Complete Part 1 - Answer Questions About Your Business
In Part 1 of the 940 form, you will need to answer several questions about your business, including:
- Question 1: What type of business do you have?
- Question 2: Did you have any employees during the year?
- Question 3: Did you pay any wages during the year?
Step 3: Complete Part 2 - Report Your FUTA Tax
In Part 2 of the 940 form, you will need to report your FUTA tax, including:
- Line 1: Total wages paid during the year
- Line 2: FUTA tax deposited during the year
- Line 3: FUTA tax liability for the year
Step 4: Complete Part 3 - Report Your FUTA Tax Deposits
In Part 3 of the 940 form, you will need to report your FUTA tax deposits, including:
- Line 1: Date of deposit
- Line 2: Amount of deposit
Step 5: Complete Part 4 - Report Your FUTA Tax Liability
In Part 4 of the 940 form, you will need to report your FUTA tax liability, including:
- Line 1: FUTA tax liability for the year
- Line 2: Payment due date
Additional Tips and Reminders
- Make sure to sign and date the form
- Keep a copy of the form for your records
- File the form by January 31st of each year
Conclusion - Completing the 940 Form with Confidence
Completing the 940 form can be a daunting task, but by following these steps and tips, you can ensure that you file your taxes accurately and on time. Remember to gather all required information, complete each part of the form carefully, and review your work before submitting. By doing so, you will be able to complete the 940 form with confidence.
FAQ Section
What is the deadline for filing the 940 form?
+The deadline for filing the 940 form is January 31st of each year.
What is the FUTA tax rate?
+The FUTA tax rate is 6% of the first $7,000 of wages paid to each employee.
Can I file the 940 form electronically?
+Yes, you can file the 940 form electronically through the IRS website.
We hope this article has provided you with the necessary information and guidance to complete the 940 form with confidence. If you have any further questions or concerns, please don't hesitate to reach out.