Form 940 and 940-EZ - Employer's Annual Federal Unemployment Tax Returns
As of 01/01/06, Form 940EZ is no longer available. Form 940 (PDF) will be filed beginning for the tax year 2006.If you are an employer, other than a household or agricultural employer, you may have to file a Federal Unemployment tax return, Form 940 (PDF) or Form 940EZ (PDF) for 2004, if either of the following situations apply:
- You paid $1,500 or more in wages during any calendar quarter in 2003 or 2004, or
- You had at least one employee work for some part of a day in any 20 or more different weeks in 2003 or 20 or more different weeks in 2004.
Count all regular, temporary, and part-time employees for wages paid. If you are a household employer, you will generally file Schedule H, Form 1040 (PDF) , if you paid cash wages of $1,000 or more in any calendar quarter of 2003 or 2004 for household work in your private home. Also, file Form 940 (PDF) or Form 940EZ (PDF) if you paid cash wages of $1,000 or more in any calendar quarter in 2003 or 2004 for household work in a local college club, or a local chapter of a college fraternity or sorority.If you are an agricultural employer, you will have to file Form 940 (PDF) or Form 940EZ (PDF) for farm workers if:
- You paid cash wages to farm workers of $20,000 or more in any calendar quarter in 2003 or 2004, or
- You had 10 or more farm workers during some part of a day for at least one day during any 20 or more different weeks in 2003 or 20 or more different weeks in 2004. Bona fide residents of Puerto Rico should refer to Tema 903 - Impuestos Patronales (Federales) en Puerto Rico.
Include cash compensation paid to aliens (also known as workers with H-2 (A) visas) admitted on a temporary basis to the U.S. to perform farm work, to see if you meet either test. However, compensation paid to H-2 (A) visa holders is not subject to the Federal unemployment tax and should be entered as "Exempt Payments" on line 2 of either Form 940 (PDF) or Form 940EZ (PDF).
The gross Federal unemployment tax rate for 2004 is 6.2% and is figured on the first $7,000 of wages you paid each employee in 2004. If you paid all of the state unemployment tax timely on the same wages, you are allowed a state credit of up to 5.4%. The Federal tax rate after the credit is .8%.
If you do not pay the state unemployment tax timely, your credit for the late payment(s) is limited to 90% of the amount you would have been allowed, if paid on time.You may be able to file Form 940EZ (PDF), a simplified Federal unemployment tax return for 2004, if you meet three tests:
- You made state unemployment contributions to only one state,
- You paid all your state contributions by January 31, 2005, (February 10th if you deposited all FUTA tax when due), and
- All of your Federal unemployment tax wages were also taxable for your state's unemployment tax.
The due date for filing the 2004 Form 940 (PDF) or Form 940EZ (PDF) is January 31, 2005. However, if you deposited all FUTA tax when due, you have until February 10, 2005, to file. For more information, refer to Publication 15, Circular E, Employer's Tax Guide, and Publication 15-A (PDF), Employer's Supplemental Tax Guide. Additionally, if you are interested in the Form 940 (PDF) e-file Program or the 940 On-Line option, please visit our website at www.irs.gov and click on the e-file logo or call toll free 1-866-255-0654.
For information on deposit rules, refer to Form 940 and 940-EZ - Deposit Requirements.