Reconciles prior quarterly deposits of FUTA taxes and pays the balance due.
Forms to use
940 Annual Return for FUTA Tax
How often?
Annual requirement
Due date
January 31st
How to complete form 940
Lines and what to enter
A: Total unemployment paid to the state (do not include training taxes)
B: State and state employer ID number
1: Total wages for employees for the year
2: Wages for any employees exempt from federal UI taxes. Do not include corporate officers.
3: Wages over the $7,000 limit for all employees who paid UI taxes. For example, if Susan was paid $25,000 for the year, the excess wages for federal purposes is (25,000-7000)=18,000.
4: Add lines 2 plus 3
5: Subtract line 4 from line 1
6: Multiply line 5 by .006
7: Total FUTA tax that you deposited during the year (if any).
8: Amount you still owe, line 6 minus line 7.
How to pay
You can either mail the form or file it electronically through a private service.
Mail form 940 to the IRS with any balance due. The balance due should be less than $500 or quarterly deposits should have been made. Make the check payable to the IRS and be sure to put your federal employer ID number on it.
Click here for IRS 940 mailing addresses
File electronically: Visit http://www.irs.gov/efile/lists/0,,id=105872,00.html" for a list of qualified vendors.
Dated form
IRS form 940 is dated and is only available just before its required due date (January 31st).
To pay
Pay electronically
Pay via credit card (with a service fee). There are two approved providers:
Questions?
Call the IRS information hotline (800) 829-4933. For forms, call (800) 829-3676 or obtain them online at http://apps.irs.gov/app/picklist/list/formsPublications.html.
Businesses that employ 50 or more full time employees must provide IRS 1095-C to their employees and the IRS at the same time W-2's are due (January 31st to employees; February 28th to the IRS). This report shows the health care plan that was offered to each employee, the employee's share of cost, and whether the offer included health care coverage for the employee's spouse or dependents.
Forms to use
IRS 1095-C to the employee.
IRS 1095-C plus a 1094-C Transmittal form to the IRSDue Date
January 31st to employees
February 28th to the IRS
Penalties
There is a $250 penalty for each return not filed. There are additional penalties for large employers that do not offer affordable health insurance to their employees.
Questions?
Call the IRS information hotline at (800) 829-4933.
This form is used to report business you have done with independent contractors (who are not corporations) and medical corporations. Complete Form 1099-Misc:
Forms to use
1099-M Annual Information Form for Independent Contractors
Preparing 1099s is not user-friendly. The IRS does not have a direct way to input the information online. Instead, it has authorized companies to be 1099 providers. Do a search on the Internet for current providers and prices.
How often?
Annual reporting requirement
Due date
January 31 to the recipient
February 28 to the IRS
To do it yourself
Doing it yourself is possible, but not user-friendly. You have to use official IRS forms and must prepare them using a computer or typewriter (remember those?). Here is how to do it:
Prepare 1 form for each payee.
Lines and what to do
Left side
Right side
Fill in the relevant boxes. Here are the most commonly used.
1: Rent to landlords (if you paid more than $600).
7: Compensation to independent contractors for services (if you paid them more than $600).
9: Check the box if you purchased over $5,000 of products for resale from this (non-corporate) vendor.
How to complete form 1096
1096 is the transmittal form. It must also be prepared on a computer or typewriter. Prepare one form to transmit all the 1099-Misc.
Lines and what to do
Top
Bottom Check box 1099-MISC - 95
How to submit
A few more rules
Questions?
For forms call (800) 829-3676. You cannot obtain original forms from the Internet. For information, call (800) 829-4933 or read Publication 937 Business Reporting.