Definition: The 2015 IRS Form 940, also known as the Employer’s Annual Federal Unemployment (FUTA) Tax Return, is a form provided by the Internal Revenue Service (IRS) in the United States for employers to report and calculate their annual federal unemployment tax obligations.
Overview:
The 2015 IRS Form 940 is specifically designed to help employers fulfill their responsibilities under the Federal Unemployment Tax Act (FUTA). This act requires employers to pay unemployment taxes to provide financial assistance to workers who have lost their jobs. The form captures essential information related to an employer’s payroll and calculates the federal unemployment tax due.
Purpose:
The main purpose of the 2015 IRS Form 940 is to determine the unemployment tax liability of employers. This form helps employers report their unemployment tax liability and reconcile any payments they have already made. By completing this form accurately, employers ensure compliance with the federal tax laws and contribute to the overall social welfare system.
Importance:
The completion of the 2015 IRS Form 940 is crucial for employers, as it directly impacts their tax obligations. It allows the IRS to calculate the amount of federal unemployment taxes owed based on the wages paid to employees during the tax year. Employers must file this form annually, reporting their unemployment tax liability for the previous year.
Required Information:
To accurately complete the 2015 IRS Form 940, employers need to provide the following information:
- Employer Information: This includes the employer’s name, address, and employer identification number (EIN).
- Employment Details: Employers need to report the total number of employees (both full-time and part-time) during the year and the amount of wages paid to them.
- Credits and Adjustments: Various credits and adjustments can be claimed on the form, such as the Credit Reductions for certain states and the FUTA tax rate adjustments.
- Payments Made: Employers need to report any FUTA tax payments they have already made during the year.
Filing Deadlines:
The 2015 IRS Form 940 must generally be filed by January 31, 2016. However, if employers timely deposited all the required FUTA tax for the year, they can file the form by February 10, 2016.
Penalties for Non-Compliance:
Failure to file the 2015 IRS Form 940 or submitting incomplete or erroneous information can lead to penalties imposed by the IRS. It is essential for employers to exercise diligence while completing this form to avoid any potential penalties and navigate the federal tax system efficiently.
In conclusion, the 2015 IRS Form 940 is a significant document that enables employers to fulfill their federal tax obligations related to unemployment taxes. It collects essential payroll information, calculates the federal unemployment tax liability, and ensures compliance with federal tax laws. Employers should approach the completion of this form with accuracy and timeliness to avoid any penalties and maintain a sound financial standing with the IRS.
