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Mailing Addresses for Forms 940 Mail return without payment Mail return with payment Internal Revenue Service P.O. Box 409101 Ogden, UT 84409Internal Revenue Service P.O. Box 932000 Louisville, KY 40293-20004 more rows Sep 15, 2022
Youre encouraged to file Form 940 electronically. Go to IRS.gov/EmploymentEfile for more information on electronic filing. If you file a paper return, where you file depends on whether you include a payment with Form 940. Mail your return to the address listed for your location in the table that follows.
Form 940, Line 3, total payments to all employees, should include all payments made related to employee services. This includes payments that are not subject to FUTA tax.
How to compute FUTA tax liability Subtract the maximum allowable credit rate from the FUTA tax rate (6.2% 5.4% = . 8%). Multiply each employees wages up to the wage base ($7,000) paid in the quarter by .8% Add up the totals, and the resulting figure is the net quarterly FUTA tax liability.
Complete employer information A section for your businesss information is at the top of each 940 form. Enter your employer identification number (EIN), business name, and address. If you operate under a doing business as (DBA), include the DBA in this section.
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Use Form 940 to report your annual Federal Unemployment Tax Act (FUTA) tax. Together with state unemployment tax systems, the FUTA tax provides funds for paying unemployment compensation to workers who have lost their jobs. Most employers pay both a federal and a state unemployment tax. Only employers pay FUTA tax.
Tax Information Generally, federal law provides employers with a 5.4 percent FUTA tax credit toward the 6.0 percent regular tax when they file their Employers Annual Federal Unemployment (FUTA) Tax Return (Form 940). However, this credit will be reduced by 0.3 percent to 5.1 percent for the 2022 tax year.
To calculate your SUTA tax as a new employer, multiply your states new employer tax rate by the wage base. For example, if you own a non-construction business in California in 2021, the SUTA new employer tax rate is 3.4%, and the taxable wage base per worker is $7,000.
The form asks for total wages, exempt wages, and salary payments made to each employee earning over $7,000 (you can check the Form 940 Instructions for other taxable FUTA wages). Then, multiply the total amount by 0.6% (0.006) to determine your base amount.
The Modernized e-File (MeF) for Employment Taxes and E-File Employment Tax Forms pages offer ways to file Forms 940, 941, and 944 electronically. Prospective participants must first complete and submit an IRS e-file application. You can complete the IRS e-file application online after registering for e-services.

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