The 2017 Form 940, also known as the Employer’s Annual Federal Unemployment (FUTA) Tax Return, is a tax form issued by the Internal Revenue Service (IRS) in the United States. It is specifically designed for employers to report and pay their annual Federal Unemployment Tax Act (FUTA) liability.
Explanation:
The 2017 Form 940 serves as a crucial tool for employers to fulfill their obligations under the FUTA. FUTA is a federal law that imposes taxes on employers to fund unemployment compensation for eligible workers who have lost their jobs. Employers are responsible for paying FUTA taxes and filing the Form 940 annually to report the amount owed.
Purpose:
The primary purpose of the 2017 Form 940 is to calculate and report the federal unemployment tax owed by employers to the IRS. The form assists in determining the FUTA tax liability by taking into account the employer’s taxable wages, the FUTA tax rate, and any applicable adjustments or credits. By submitting the Form 940, employers contribute to the funding of unemployment benefits and help ensure the stability of the unemployment insurance program.
Key Fields and Sections:
The 2017 Form 940 consists of various sections where employers must provide accurate and detailed information:
- Employer Information: This section requires the employer to input their name, address, employer identification number (EIN), and contact details.
- FUTA Tax Liability: Employers are required to compute their FUTA tax liability based on their taxable wages and the FUTA tax rate set by the IRS. In this section, employers must carefully calculate their liability and enter the corresponding figures.
- Adjustments and Credits: Employers may be eligible for certain adjustments or credits that can reduce their FUTA tax liability. This section allows employers to claim these adjustments, such as the state unemployment tax credit, and calculate the total FUTA tax owed after adjustments.
- Payments and Deposits: Employers must report any payments made towards their FUTA tax liability during the tax year. They are required to provide details of each payment, including the date and amount, as well as any previous overpayment or balance sent forward.
- Signature and Certification: The final section of the form requires the employer or authorized representative to sign and certify the accuracy of the reported information. This signature confirms that the employer has fulfilled their legal obligations by filing the 2017 Form 940.
Filing Deadline:
The deadline for submitting the 2017 Form 940 is usually January 31st of the following year. However, if employers have deposited all the FUTA tax due in full and on time, they are granted an automatic extension until February 10th to file the form.
Failure to File or Errors:
Employers are strongly advised to file the 2017 Form 940 accurately and on time to avoid penalties or the risk of erroneous reporting. Failure to file the form or submitting incorrect information can result in monetary penalties imposed by the IRS.
It is essential for employers to consult with tax professionals or utilize reliable electronic tax filing systems to ensure compliance with the requirements of the 2017 Form 940. The IRS provides comprehensive instructions for completing the form, including detailed explanations of each line item, to assist employers in meeting their obligations accurately and efficiently.
Note: The information provided here is a general overview of the 2017 Form 940 and its requirements. Employers should consult the official instructions and regulations provided by the IRS or seek professional advice to ensure compliance with specific circumstances and any updates or changes to the filing requirements.
