The IRS has re-designed and consolidated Forms 940, 940EZ and 940PR into one – 2 page form for all to file. If necessary, you may have to fill in and file a Schedule A (940), not included in the CheckMark Payroll program. While most of the information is already contained in the payroll data, there is some information that you will need to provide in order for the Payroll program to fill in your Form 940 to file with the IRS. CheckMark provides .pdf files of the Form 940, Schedule A and instructions for the Form 940 in the IRS Form folder inside the Payroll folder on the hard drive of your computer. Forms and instructions can also be downloaded at Internal Revenue Service web site or you can open them in Acrobat Reader (version 6.0.5 or higher)from the IRS Forms folder located in the Payroll folder on the Hard Drive of your computer.
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 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. Select this checkbox if ALL FUTA wages are not subject to state unemmployment tax. You will need to pay your FUTA tax based on a rate of 6.2%. (This rate is scheduled to decrease to 6.0% for 2008 unless pending legislation passes. If the legislation passes, the rate will remain at 6.2%.)
If line 9 is selected, lines 10 and 11 do NOT apply.
10. If you have some FUTA wages are excluded from state unemployment OR you paid ANY state unemployment tax late, you will need to fill in the worksheet (included in the instructions for Form 940) and enter the amount from line 7 here.
11. If you selected the box for line 2, enter the amount from line 3 Schedule A(940) part 2 here.
13. Enter the amount of FUTA tax deposited for the year.
Form 940: FUTA exempt payments
Indicate any/all types of payments made that apply. Can choose more than one (1).
Form 940: Overpayment
If you have overpaid your FUTA tax, indicate how the IRS should handle that overpayment.
Form 940, Part 6: Third-party designee
Mark the check box and fill in designee’s name, phone and PIN if applicable.
Form 940, Part 8: For paid preparer only (optional)
If you are a paid preparer and you wish this information to appear on page 2 of the Form 940, enter your information in the spaces provided.
Print out the Form 940 on blank 20# copy paper. You will need to read, sign (on page 2), and then mail to the IRS. Send in a check with your form if applicable.
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.
The Adobe Reader program version 6.0.5 or higher is required in order to print the Form 940 from the CheckMark Payroll program.