What Form 940 (2013) Is For
Form 940 (2013) outlines an employer’s annual federal unemployment responsibility established through the Federal Unemployment Tax Act (FUTA). Employers pay Federal Unemployment Tax on employee wages to support unemployment insurance systems that assist workers during periods of lost income. The form applies to employers subject to FUTA who manage salaries paid during the 2013 calendar year.
The Internal Revenue Service uses Form 940 to verify Federal Unemployment Tax payments and confirm accurate reporting across eligible payroll activities. The filing ensures each employer supports unemployment benefits funded through coordinated federal programs. This section prepares you to review how the form connects employee wages to required FUTA compliance.
For a detailed breakdown of filing requirements, eligibility rules, and step-by-step instructions, see our comprehensive guide to payroll and employment tax forms required for federal and state tax reporting.
When You’d Use Form 940 (2013)
Employers file Form 940 when the tax applies to eligible wages paid to one or more employees during the calendar year 2013. The form supports Federal Unemployment Tax reporting when employees' pay FUTA tax is not required because employers carry the full responsibility. Employers also use the form when they stop paying wages but still meet the thresholds of the State Unemployment Tax Act for prior periods.
Form 940 ensures accurate reporting when employers manage wage activity tied to federal unemployment requirements. The filing applies when operations involve eligible wages that support unemployment systems across state and federal programs. This section explains how filing decisions connect wage activity to required compliance responsibilities.
Key Rules or Details for 2013
Employers follow federal law that sets unemployment insurance obligations through the FUTA tax rate for the 2013 filing year. The Internal Revenue Service requires employers to report wage activity that supports unemployment compensation programs across federal systems. The rules help employers identify taxable wages and confirm how each payment supports coordinated unemployment funding.
State unemployment insurance payments affect every employer’s FUTA tax credit because timely payments allow access to the maximum credit. Employers track wage activity to report accurate totals that determine the final FUTA tax rate for the year. These requirements help employers calculate obligations that align with federal unemployment systems.
The 2013 rules guide employers through credit requirements, wage reporting, and coordinated federal reviews. The regulations strengthen unemployment insurance operations, which are funded through employer activity. This section prepares you to apply each rule when you complete your annual return.
Step-by-Step (High Level)
This section explains how employers follow each requirement during the 2013 calendar year. The process helps employers calculate FUTA tax liability and verify quarterly payment obligations across each calendar quarter. The steps support accurate reporting before employers submit federal tax deposits to pay FUTA tax.
- Employers gather payroll records to calculate FUTA tax liability for all eligible wage activity.
- Employers review wage totals to confirm the correct FUTA liability for the reporting period.
- Employers determine the required quarterly payment amounts to comply with federal rules.
- Employers prepare federal tax deposits to pay FUTA tax in accordance with Internal Revenue Service schedules.
- Employers complete final checks to confirm that calendar year totals match each calendar quarter entry.
These steps guide employers through essential reporting tasks. The process helps employers produce accurate calculations for every FUTA requirement. This section prepares you to complete the form with organized and compliant entries.
Common Mistakes and How to Avoid Them
Employers handle payroll taxes that determine how each business pays FUTA taxes, and several recurring issues create compliance problems when preparing Form 940. Many errors involve state unemployment programs, and these issues impact household employees, household employers, agricultural employees, and agricultural employers in ways that require careful attention. This section explains common problems and provides clear solutions that support accurate filing.
- Incorrect wage reporting: Employers verify every wage entry before filing to prevent miscalculations.
- Late FUTA payments: Employers schedule payments early to prevent delays in paying FUTA tax.
- State program errors: Employers verify that reported amounts match those in state unemployment programs to confirm accuracy.
- Household worker errors: Household employers review coverage rules for household employees to prevent omissions.
- Agricultural wage issues: Agricultural employers classify their agricultural employees accurately to avoid FUTA adjustments.
These steps help employers maintain accurate Form 940 entries. The guidance strengthens wage reporting for every covered category. This section leads into the following review of post-filing expectations.
What Happens After You File
The Internal Revenue Service reviews each filing to confirm federal unemployment reporting and wage accuracy across the whole year. The agency compares information to state unemployment funds that operate in accordance with state law requirements. The process verifies how employers support unemployment benefits through coordinated funding obligations.
Federal income tax systems do not alter the review process, as the agency evaluates Form 940 information separately. The Internal Revenue Service confirms how reported amounts pay benefits that connect federal unemployment programs to state requirements. The filing moves forward when all details match system records and support accurate calculations for annual reporting.
FAQs
What does FUTA stand for, and how does it support unemployment programs?
FUTA stands for the Federal Unemployment Tax Act, which the federal government uses to fund unemployment benefits through nationwide unemployment insurance programs. The system helps provide financial assistance when workers lose wages earned during periods of high unemployment. The law requires only employers to pay taxes that support these programs.
Who must file Form 940 and follow federal unemployment requirements?
Most employers file Form 940 when they meet the FUTA wage base threshold set by federal law. The requirement applies when employers pay wages earned during the year that support unemployment compensation funding. Some nonprofit organizations may qualify for exemptions based on federal unemployment guidelines.
Do household employees or self-employed individuals pay (FUTA) tax?
Household employees may be covered when household employers reach the cash-wage threshold set under state unemployment insurance rules. Self-employed people pay FUTA obligations, which do not apply because FUTA requires only employers to pay taxes for covered workers. These rules ensure that unemployment insurance programs remain funded by employers.
How do state unemployment rules affect my (FUTA) responsibilities?
Employers follow the State Unemployment Tax Act and state unemployment insurance requirements when they calculate their annual FUTA credit. Each payment supports state unemployment tax systems and may reduce the effective FUTA tax rate for the year. Credit reduction rules apply when states borrow federal funds during periods of high unemployment.
What happens if I file near a legal holiday or need extra processing time?
The Internal Revenue Service accepts timely filings when employers submit Form 940 on the next business day following a legal holiday. Employers who pay taxes late may lose part of their FUTA credit, which increases total liability. These rules help ensure that the federal and state unemployment tax systems can fund unemployment benefits without interruption.
For more resources on filing or understanding prior-year IRS forms, visit our complete list of IRS-approved federal fillable tax forms you can use to prepare and file your return online.
