Form 940

Form 940 is a quarterly tax return for employers to report wages and some federal employment taxes. It covers all payments made to employees, including regular wages, sick pay, vacation pay, and bonuses. When are the 940 forms due? You must file form 940 if the total of all your payments to employees that quarter is $1 million or more. If you fail to file or provide an IRS-approved substitute form on time and in full, you may be subject to penalties plus interest on the amount due.

You should fill out tax form 940 if you withheld taxes from an employee’s pay, paid unemployment taxes, paid federal income tax withholding, or paid railroad retirement taxes.

You can also just file form 940 if you are an individual taxpayer who had no withholding but still needs to make estimated tax payments for the current year. This applies to people who own businesses as well as individuals who have other sources of taxable income and might be subject to self-employment tax.

Where to send form 940? You should send it to the Internal Revenue Service (IRS). The IRS will then forward a copy of your form to the appropriate state agency. In addition, the state will send a copy of your form 940 to you as well.

Many employers wonder how to fill out 940 forms. Filling out may be time-consuming and confusing, but doing so helps businesses properly report their annual income and expenses to the IRS.

1. The first step is to complete the information that is used to identify the business and employer. This includes the business name, taxpayer ID number (EIN) and address, and employer's telephone number — if you have one. 
2. The second step of the form requires information regarding any unemployment taxes that were paid during the tax year.
3. The third step is to fill out the remainder of the form by supplying details related to schedules and liabilities.

What is the 940 form for employers? This is primarily a document that is allowed to be amended. Amending Form 940 is not difficult. You can amend the form in a few simple steps, including online or by phone.

The IRS will accept amended returns if you made mistakes entering information on your original tax return, such as forgetting to include wages earned, or claiming more credits than you were entitled to receive.

If this is the case, follow these steps:

1. Go to the IRS website and select «Amend Individual Tax Return».
2. Follow the instructions provided by the site's software.