TaxBandits Knowledge Base

Why do we need to file form 940(Sch R)?

There are two reasons for filing Form 940(Sch R).

• If you are a multi-state employer (i.e., you paid state unemployment tax in more than one state) (Line 1b)
• If you paid employees' wages in a credit reduction state (Line 2)

Also, you must complete and submit Schedule A of Form 940 if you are a multi-state business or received wages in a credit-reduction state.