Often thought of as the forgotten tax return, Form 940 is not only used to reconcile Federal Unemployment Tax (FUTA), it is also used in conjunction with State Unemployment Tax (SUI or SUTA) as well. Each year the states "certify" to the IRS that your company made SUI tax payments on time. If payments were late or made to the wrong State or Federal ID, the IRS could increase your FUTA tax retroactively by as much as 5.4% per employee up to the first $7000 in wages.
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If your company failed to file Form 940 or is receiving notices regarding this Form,