Creating 940 Reports

Quickly and accurately create 940 reports in CheckMark Payroll. The 940 FUTA Taxes window prints the Form 940, Employers Annual Federal Unemployment (FUTA) Tax Return and gives you information that is useful for filling out the return manually.

1. Click 940 FUTA Tax in the Command Center.

2. Select Form 940 Report Option.
3. Fill in necessary information in the 940 FUTA Tax Window as appropriate for your report. For more information see “Fields on the 940.”
4. Click Print. The filled in form will open in Acrobat Reader.If necessary, modify/edit any field in Acrobat Reader, save the file if you wish, and/or print out pages from Acrobat Reader.

Changes made in Adobe Reader are not reflected in Payroll.

Fields on the 940

1a Mark this box if you pay unemployment tax (SUTA) in only 1 state. Also, fill in the two (2) letter postal abbreviation in the box to indicate which state you pay the unemployment taxes in.

If box 1a is not selected, CheckMark Payroll program will automatically mark box 1b on Form 940 indicating that you pay unemployment taxes to more than one (1) state. You are then required to fill in Part 1 Schedule A (940) and submit with your Form 940. Schedule  A (940) is not printable from CheckMark Payroll directly so you will need to download from irs.gov (press link above), or fill in this form that was sent to you by the IRS in the mail.

2 If you have paid unemployment in a credit reduction state, you will need to select the checkbox here. If you select this check box, you will need to fill in Schedule A (940) and fill in Part 2. Additionally, the amount from line 3 of Schedule A (940) Part 2 will need to be entered for line 11 on this screen.

The US Dept of Labor determines credit reduction states. These are states that have not repaid the federal government for unemployment benefits paid. If your state is a credit reduction state, you will need to pay additional FUTA tax when filing your Form 940.

9 Check this box if all FUTA wages were exempt from state unemployment (SUTA).

If line 9 is selected, lines 10 and 11 do NOT apply.

10 Enter the amount to print on Line 10 if some of the FUTA wages you paid were excluded from state unemployment or if you paid any state unemployment tax (SUTA) late. This amount is from line 7 of the worksheet included in the Form 940 instructions.

11 Enter an amount to print on Line 11 if a credit reduction applies. This amount is from Schedule A, Part II, line 3.

13 Enter an amount to print on Line 13 for your FUTA tax deposited for the year.

Part 6-Third-party Designee	Enter information that will print in the appropriate section on the 940 if you use a third-party designee.
Part 8: For paid preparers only (optional)	Enter information here that will print in the appropriate section on the 940 if you are a paid preparer. If line 12 is greater than $500, CheckMark Payroll will automatically fill in Part 5 lines 16-17 on Form 940. Part 7, date will be filled in by CheckMark Payroll based on the system date of your computer.
FUTA Exempt Payments	Check all boxes that apply to print on Line 4 (4a-4e).
Overpayment	If there is an overpayment on Line 15, select whether it is to Apply to next return or Send a refund.