TaxBandits Knowledge Base

How to file Form 940 in TaxBandits?

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. 

To file Form 940 with TaxBandits, follow the steps given below:

Step 1: Sign in to your TaxBandits account.

Step 2: From the dashboard, click ‘Start New Form’ and select ‘Form 940’.


 

Step 3: Select your employer from the address book or enter the employer information and click ’Save and continue.’

 

Step 4: Click on ‘Start filing’ under the current tax year and file Form 940.

Step 5: If you wish to file for the previous tax year, Click on ‘Previous Tax Year’ and Select the Start Filing button under the tax year for which you need to file Form 940.

Step 6: Provide the consent by entering the business name and clicking ‘Confirm.’

Step 7: Employer information will be pre-filled. Select the Type of Return that you are filing Form 940.

Step 8:

Complete Part-1(State Details): 

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

 

Complete Part-2(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.

Complete Part-3(Adjustments): 

• If you have excluded all taxable FUTA wages from state unemployment taxes, check ‘Yes’ and enter the deposit. 
• 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. Also, report the credit reduction. 

Complete Part-4(Balance Due/Overpayment): 

Enter the overpayment and balance due in this part and click ‘Save & Continue.’

Complete Part 5(FUTA tax liability)

If line 12 is more than $500, you must enter the tax liability for each quarter. Make sure the total tax liability must equal the total in line 12.

Complete part 6 & 7(Third-party designee/sign)

If you allow an employee, tax preparer, or another person to discuss the return with the IRS. Enter the details of the designee here. Click ‘Save and Continue.’

Step 9: 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 that are available to you.

Step 10: Once you complete the form, a summary of the form information will be displayed. Click ‘Continue’ to proceed further.

Step 11: If the form contains an error, the error code and error messages will be displayed on the audit page. Click ‘Fix Me’ to navigate to the form page and edit the form information.

Step 12: Once you fix all the errors, then click ‘Continue’ to navigate to the Signature page.

Step 13: Sign using the Online Signature PIN you received from the IRS and proceed to file the return. Enter the 10-digit PIN and click ‘Save & Continue.’

Step 14: In case you don’t have the Online Signature PIN, use Form 8453-EMP to sign the 94x returns. TaxBandits provides the option to e-sign Form 8453-EMP. You can also download, print, sign, and upload the form in PDF format.

Step 15: 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.