Bookkeeping & Write-up

As of January 2001, Form 940 can be filed over the internet. The methodology will be similar to the way Form 941 is currently being handled. IRS-approved providers are currently being finalized. Speak to your local CPA or check the IRS website at http://www.irs.gov/elec_svc/efile-bus.html.

Generally, Yes. The 941 Telefile number is 1-800-583-5345 1-800-583-5345 .The Telefile system will accept calls the first day after the period at 9 a.m.,24 hours a day. For the best results, use a touchtone phone but do not use a cordless or cellular phone, or one with a keypad in the handset. For more help, speak to your local CPA or call Telefile assistance at 1-800-829-8815 1-800-829-8815.

You use the current year Form 940 to amend a return that you previously filed in the current year. If you are amending a return for a previous year, use the previous year's Form 940. Follow these steps: Use a paper return to amend a Form 940 filed under an electronic filing program. Check the amended return box in the top right corner of Form 940, page 1, box a, Fill in all the amounts that should have been on the original form. Sign the form .Attach an explanation of why you are amending your return. File the amended return using the Without a payment address (even if a payment is included) under Where Do You File? On page 2.

No. If you filed Form 941 using the 941 Telefile method, magnetic tape or via the Internet, then you should not mail in a completed paper Form 941.

Depending on how much you paid in wages, how many employees you employed, and the "Type" of employee you employed, will determine if you have to pay Federal Unemployment taxes(FUTA)or not. The three different "types" of employees are Household employees, Farmworkers and everybody else. For non-Household of Farmworkers, the general test is that you are subject to FUTA tax on wages if you paid employee wages of $1,500 or you had one or more employees for at least some part of a day in any 20 or more different weeks. A Household worker is an employee who performs household work in a private home, local college club or local sorority or fraternity chapter. The Farmworkers test is that you are subject to FUTA tax on wages if you pay employees cash wages of $20,000 or more in any calendar quarter or you employed 10 or more farmworkers during at least some part of a day (whether or not at the same time) during any 20 or more different weeks.

Generally, your church or any other non-profit religious or educational, charitable organization is not subject to the Federal Unemployment tax (FUTA) and is not required to file Form 941. Speak to your local CPA if you are not subject to the FUTA tax.

Wages paid to state or local government employees are not subject to FUTA, the Federal Unemployment tax.

If you are a Sole Proprietor, then the individual owning the business must sign. If you are a Corporation, then the president, vice president or other principal officer must sign. If you are a Partnership or unincorporated organization, then a responsible and dully authorized member or officer having knowledge of its affairs must sign. If you are a Trust, then the fiduciary must sign. Note that Form 941 may also be signed by a duly authorized agent of the taxpayer if a valid power of attorney has been filed.

If you receive Form 940-EZ and are not liable for FUTA Federal Unemployment Tax in the current year, then write "Not Liable" across the front of the form. Sign the form and return it to the IRS.