Filing Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, electronically offers significant advantages over paper filing, including faster processing, reduced errors, and increased convenience. This guide will walk you through the process, answering common questions along the way.
What are the different ways to file Form 940 electronically?
There are primarily two methods for electronic filing of Form 940:
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Using tax preparation software: Many reputable tax preparation software packages support the electronic filing of Form 940. These programs often guide you step-by-step through the process, perform error checks, and transmit your return directly to the IRS. This is generally the easiest method for most employers.
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Using a third-party tax professional: If you prefer not to handle the filing yourself, you can engage a tax professional who specializes in business tax preparation. They will have the necessary software and expertise to file your Form 940 electronically accurately and efficiently.
What software can I use to file Form 940 electronically?
The IRS doesn't endorse specific software. However, many well-known tax preparation software providers offer this functionality. Before choosing software, ensure it's compatible with the current Form 940 version and that it supports electronic filing with the IRS. Look for software specifically mentioning FUTA tax filing capabilities.
What information do I need to file Form 940 electronically?
You'll need to gather the following information before you begin:
- Employer Identification Number (EIN): This is crucial for identification.
- Total wages paid: This includes all wages paid to employees during the tax year.
- FUTA taxable wages: This is the portion of wages subject to FUTA tax.
- FUTA tax liability: This is the calculated amount of tax you owe.
- State unemployment tax information: You'll need data related to your state unemployment tax payments to potentially claim a credit.
How do I get an EIN if I don't have one?
If you don't have an EIN, you'll need to obtain one from the IRS before you can file Form 940. You can apply for an EIN online through the IRS website. The application process is usually quick and straightforward.
What are the benefits of filing Form 940 electronically?
Electronic filing offers several advantages:
- Faster processing: Electronically filed returns are typically processed much faster than paper returns.
- Reduced errors: Software often includes error-checking features, minimizing the risk of mistakes.
- Increased convenience: You can file from anywhere with an internet connection, eliminating the need to mail the return.
- Improved accuracy: Automated calculations and data entry reduce the possibility of manual errors.
When is the deadline for filing Form 940?
The deadline for filing Form 940 is generally January 31st of the year following the tax year.
What if I make a mistake on my electronically filed Form 940?
If you discover a mistake after filing, you'll need to file a corrected Form 940 electronically. Most tax software will guide you through this process.
Where can I find more information about filing Form 940 electronically?
The IRS website is the best resource for the most up-to-date information, forms, and instructions regarding Form 940. Their site provides detailed guidance and answers to many frequently asked questions.
By following these steps and using reputable software or professional assistance, you can ensure a smooth and efficient electronic filing of your Form 940. Remember to always refer to the official IRS website for the most accurate and current information.
