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Who must file 940 schedule a Form: What You Should Know

Your 2024 Unemployment Tax Credit was reduced —  Form 940 & Schedule C | Employment Income Tax Deduction Frequently Asked Questions Can I use another state's FTA tax on my state benefits? All workers are required to file Form 940 under the federal Unemployment Tax Act (FTA), also known as the Worker Adjustment and Retraining Notification Act. Your state unemployment compensation program pays for state unemployment taxes and must follow the state's procedures. If you elect to use a different state's FTA taxes, you must complete a Schedule A (Form 940) with appropriate state unemployment tax deductions. The Form 940 instructions include the state tax system that the Form 940 will use, and a list of forms by state. The IRS provides a list of forms. You must also use the forms listed by state, if your state uses different filing procedures. Does my state require I send a Form 940? Yes. State employment taxes are required to be reported by all states. When do I send an individual's Form 940 to my state unemployment tax system? You must send your Form 940 to your state unemployment tax system within 30 days of the start of your payroll period, which is generally the first Friday of the month following the end of the month in which you pay your unemployment compensation (usually the end of each month through June of the following year). You will receive this letter from your state unemployment tax office. Can I get an Employer's Tax ID Number (EIN) that I can use on my state's unemployment tax forms? Yes. If your state uses Forms 940, Form 843, and Form 1301, you may use the EIN to file your state unemployment tax returns, including form 936, Form 940, or Form 940(e). It is important to make any required corrections to the Form 940 with the state. When do I send federal Forms W-2 to my state unemployment tax system? You must send a copy of the Form W-2 with your state unemployment tax returns, and Form W-2(s) with your state unemployment tax returns when your unemployment tax liability exceeds the amount of your weekly W-2 wages, as determined based on a calculation (such as a daily rate for each calendar week), or the federal unemployment tax exclusion amount (typically 5,000 for 2017).

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