Announcement

Collapse
No announcement yet.

940

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    940

    Forgive my ignorance on this subject. I'm new to payroll issues and trying to learn by the seat of my pants.

    New client, very small payroll. I filed the 941 and all the State forms. However, I'm very confused about the FUTA filing. Am I suppose to file only the 8109 each month and file one 940 at year-end with these monthly totals on it?

    Any tips and clarification you can lend will be really appreciated!

    Thank you,
    Dennis

    #2
    Deposits

    Form 940 Deposits are due each Quarter unless the annual total liability is less than $500.

    The form 940 is an annual form filed by January 31.

    If the annual total liability is less than $500, then the tax can be paid with the annual filing and no quarterly deposits are due.

    Doug

    Comment


      #3
      Filing Requirements- For employers who paid a total of 1500$ or more in wages in any calendar quarter

      Deposit rules:

      Employers are required to deposit taxes any time the FUTA liability exceeds 500 $ in a calender quarter. If the FUTa tax is 500 or less it can either be deposited or added to next quarter. ( IRC 6157;Reg.31.6302(c)-3 )

      If by 4th quarter the tax is over 500$ deposit is due by 1/31 if under 500$ payment can either be deposited or paid with form 940

      If you have it the "other book" "small business" has a pretty good explanation on pages I-4 and I-5
      These are just a brief overview I would look at the instructions and or code for more detailed explanation. Godd luck

      PS:Sorry last year I was not aware of the tax book when I ordered, this will change this year.

      Comment


        #4
        Looks OK

        Doug and sea-tax,

        For the three months my client has been opened, she has only booked $64 in FUTA, so it appears she may be able to pay it all at year's-end on the 940. I'll keep an eye on it.

        Thanks,
        Dennis

        PS sea-tax. Have you ordered the TaxBook for '06 yet? Do.

        Comment


          #5
          940 Limit

          Remember the tax is on the first $7000 and if all SUTA has been paid the tax is based on.008 of the $7000.

          Comment


            #6
            Tax based on first $7,000.

            Of each employee, not total payroll.

            Comment


              #7
              Yes

              I meant for each employee

              Comment

              Working...
              X