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Form 940 (Schedule R) Memphis Tennessee: What You Should Know

Schedule G of the same Form 940 shows the federal withholding taxes due on the wages paid (Form W‑2). Schedule D is the schedule of federal employer taxes for wages received from a partner (Form W‑2G). The other schedules in Sec. 1401(a)(7) (other than Schedule D) and Sec. 1402(a)(10) (other than Schedule D) show the state taxes due on the wages the taxpayer received, but also list those amounts on the Form 845. For each individual or corporate debtor, the Form 940-W shows wages or other amounts includible on it and the information specified thereon. For example, Table 1 to Form 940-W shows the amounts includible on Form 940A, and Table 2 shows amounts that must be included on Form 940, unless they are already included on Schedule W-2. For a corporation, the amounts include wages earned that are excluded from gross income under Sec. 877(c)(2). Each person has a Form W-2, which shows the individual's or firm's social security number, and the amount of social security benefits that must be deducted for unemployment taxes. Generally, the amount of state tax (if any) paid on wages is not included on Form W-2. However, if a firm provides services that the state cannot tax, then the state tax on those wages is deductible. Forms 941 and Form 940 are filed by the mayor of the tax. It is the mayor, the taxpayer, who determines whether to withhold or credit taxes and/or wages on behalf of the person to whom the wages were paid. It is the person who is in possession of that taxpayer identification number. Therefore, a firm may be in possession of a Form W-2 but also be the (payer) of the tax.  If the taxpayer is a corporation, the payroll records of the firm must meet the provisions listed in the Instructions to Form W-3. If the taxpayer is a partnership or S corporation, then the partnership or S corporation records must be filed with the partnership or S corporation. Section 1.4 of Form W-2 shows how to report payments to a partner (Form W-2G). See Publication No. 13‑424, Unrelated Business Income and Expenses, for more information. Form 940‑W and Schedule R are filed with the IRS by the taxpayer.

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