Form 940

[oceanlovin'ea]

When a sole proprietor employs his spouse or children, they are not subject to FUTA. I have that figured out finally. But since a 941 is filed for payroll taxes (for spouse), are we required to file the 940 and show that the wages are all exempt?

Linda, EA

[ATSMAN]

When a sole proprietor employs his spouse or children, they are not subject to FUTA. I have that figured out finally. But since a 941 is filed for payroll taxes (for spouse), are we required to file the 940 and show that the wages are all exempt?

Linda, EA

You make the adjustment on line 4. Payments for services provided to you by your parent, spouse, or child under the age of 21. Exempt wages.

[oceanlovin'ea]

Have to file 940?

So you are saying that we do have to file the 940 and show the exempt wages???

Linda, EA

[ATSMAN]

So you are saying that we do have to file the 940 and show the exempt wages???

Linda, EA

That is how I have done it when exempt wages were involved and never had any issues.

[Kram BergGold]

File

Of course you have to file Form 940. How else would IRS know the wages are exempt.