How do I file Form 940 in TaxBandits?
1.1k views |Last modified 11/1/2023 6:50:32 AM EST | Added by TaxBandits Team

To report your yearly Federal Unemployment Tax Act (FUTA) tax, use Form 940. In conjunction with state unemployment tax systems, the FUTA tax provides funding for paying unemployment benefits to workers who have lost their jobs. 
Follow the below steps to file 940 in TaxBandits:

• Sign in to your TaxBandits account.
• From the dashboard, click Start New >> Form >> 940.
• Select your employer from the address book or enter the employer information.

• Select the Continue button under the tax year for which you need to file form 940.

• Employer information will be pre-filled. Select the Type of Return that you are filing Form 940.

Enter state details:

If you had to pay state unemployment tax in one state only, Choose the state you are reporting. If you are reporting for multiple states, check the boxes in line 1b. Schedule A for Form 940 will be automatically generated after transmission and available in the Print Center.

FUTA details:

Report the total payments made during the calendar year. Include payments for the services of all employees, even if the payments aren't taxable for FUTA, and view the amount before adjustments.

Adjustments:

If some or all of your taxable FUTA wages you paid were excluded from state unemployment tax or any of your payments of state unemployment tax were late, you can report them here.

• If you select the option “Yes”, enter the deposits made this year.

Balance Due/Overpayment:

Here, the deposits made for the reporting year will be shown. 

• Enter the overpayment from the prior year. The Balance due / Overpayment is shown. Save & Continue to proceed further.

Payment Options:

Choose the payment options available to pay the IRS for 94x filing. 

If you owe any tax to the IRS when filing 94x forms, you can opt for payments to the IRS through one of the following methods:

• Electronic Funds Withdrawal (EFW)
• Electronic Federal Tax Payment System (EFTPS)
• Credit/Debit Card
• Check or Money Order

Click here to learn more about the payment options available to you.

• Once you complete the form, a summary of the form information will be displayed. Click Next to proceed further.

• If there is any error in the form, the error code, along with error messages, will be displayed on the Audit page. Click Fix Me to navigate back to the form page to edit the form information.

• Once you fix all the errors, then click Next to navigate to the Signature page.

Signature:

Sign using your Online Signature PIN received from the IRS and proceed to file the return. In case you don’t have the Online Signature PIN, use Form 8453-EMP to sign the 94x return.

TaxBandits provides the option to e-sign Form 8453-EMP. You can also download, print, sign, and upload the form in PDF format.

• Review the filing fee and select any add-on services such as text notification and printed copies of your 940 forms. Click Next.

• Complete the payment, and your Form 940 will be transmitted to the IRS. 

Print a Copy:

After you transmit the return to the IRS, a copy of Form 940 will be available in the Distribution Center. For step-by-step instructions on how to access a copy of the form, click here.