Form 940 (and Schedule A): Employer's Annual Federal Unemployment Tax Return


Can I skip the Form 940 interview?

No. You must complete the interview so that QuickBooks knows whether to create a Schedule A with Form 940 for you.

Do I need to fill out Schedule A?

You are required to complete Schedule A (Form 940): Multi-State Employer and Credit Reduction Information and file it with Form 940 if either of the following apply:

  • You were required to pay your state unemployment tax in more than one state.

  • You paid wages in any state that is subject to credit reduction.

Consult with your professional tax advisor or contact the IRS to determine whether or not you need to file Schedule A with Form 940.

What are the "additional questions" used for in the interview?

QuickBooks uses these additional questions to gather the remaining information it needs to complete your form.

What are exempt payments?

Exempt payments are wages you paid that are exempt from FUTA taxes.

QuickBooks includes payroll items to track three categories of exempt payments (moving expenses, dependent care, and group term life). If you use these payroll items, QuickBooks includes them on your Form 940 for you.

If you have QuickBooks payroll items with the following tax tracking types and any payroll item set to calculate before FUTA withholding, QuickBooks includes the amount for that payroll item in the Exempt Payments total on your Form 940.

  • Fringe benefits

  • Group term life insurance

  • Retirement/pension

  • Dependent care

  • Other

You must enter any other exempt payments manually, using the drop-down lists on the interview sheet.

Last updated 12/17/2007. ©2008 Intuit Inc. All rights reserved.