Credit reduction state.
A state that has not repaid money it borrowed from the federal government to pay unemployment benefits is a “credit reduction state.
” The Department of Labor determines these states. If an employer pays wages that are subject to the unemployment tax laws
of a credit reduction state, that employer must pay additional federal unemployment tax when filing its Form 940.
For 2012, there are credit reduction states. If you paid any wages that are subject to the unemployment compensation
laws of any of those states, the regular .054 credit is reduced. Use Schedule A (Form 940), Multi-State Employer and Credit
Reduction Information, to figure the tax. For more information, see the Schedule A (Form 940) instructions or visit IRS.gov.
Federal tax deposits must be made by electronic funds transfer.
You must use electronic funds transfer to make all federal tax deposits. Generally, electronic funds transfers are
made using the Electronic Federal Tax Payment System (EFTPS). If you do not want to use EFTPS, you can arrange for your tax
professional, financial institution, payroll service, or other trusted third party to make deposits on your behalf. Also,
you may arrange for your financial institution to initiate a same-day wire payment on your behalf. EFTPS is a free service
provided by the Department of Treasury. Services provided by your tax professional, financial institution, payroll service,
or other third party may have a fee. For more information on making federal tax deposits, see section 11 of Pub. 15 (Circular
E), Employer's Tax Guide. To get more information about EFTPS or to enroll in EFTPS, visit www.eftps.gov
or call 1-800-555-4477. Additional information about EFTPS is also available in Pub. 966, Electronic Federal Tax Payment
System: A Guide to Getting Started.
Aggregate Form 940 filers.
Agents must complete Schedule R (Form 940), Allocation Schedule for Aggregate Form 940 Filers, when filing an aggregate
Form 940. Aggregate Forms 940 are filed by agents of home care service recipients approved by the IRS under section 3504
of the Internal Revenue Code. To request approval to act as an agent for an employer, the agent must file Form 2678, Employer/Payer
Appointment of Agent, with the IRS unless you are a state or local government agency acting as agent under the special procedures
provided in Notice 2003-70, 2003-43 I.R.B. 916, available at www.irs.gov/irb/2003-43_IRB/ar09.html
Disregarded entities and qualified subchapter S subsidiaries (QSubs).
Business entities that are disregarded as separate from their owner, including qualified subchapter S subsidiaries,
are required to withhold and pay employment taxes and file employment tax returns using the name and employer identification
number (EIN) of the disregarded entity. For more information, see Disregarded entities
State unemployment information.
When you registered as an employer with your state, the state assigned you a state reporting number. If you do not
have a state unemployment account and state experience tax rate, or if you have questions about your state account, you must
contact your state unemployment agency. For a list of state unemployment agencies, visit the U.S. Department of Labor's website
You can file and pay electronically.
Using electronic options available from the IRS can make filing a return and paying your federal tax easier. You can
use IRS e-file
to file a return and EFTPS to make deposits or pay in full whether you rely on a tax professional or prepare your own taxes.
For IRS e-file, visit IRS.gov for additional information.
For EFTPS, visit www.eftps.gov, or call EFTPS Customer Service at 1-800-555-4477, 1-800-733-4829 (TDD), or 1-800-244-4829 (Spanish).
Electronic funds withdrawal (EFW).
If you file Form 940 electronically, you can e-file
and e-pay (electronic funds withdrawal) the balance due in a single step using tax preparation software or through a tax
professional. However, do not
use EFW to make federal tax deposits. For more information on paying your taxes using EFW, visit the IRS website at www.irs.gov/e-pay
. A fee may be charged to file electronically.
You can pay your balance due by credit or debit card.
You may pay your FUTA tax shown on line 14 using a major credit card or debit card. However, do not
use a credit or debit card to pay taxes that are required to be deposited (see When Must You Deposit Your FUTA Tax
, later). For more information on paying your taxes with a credit or debit card, visit the IRS website at www.irs.gov/e-pay
Photographs of missing children.
The IRS is a proud partner with the National Center for Missing and Exploited Children. Photographs of missing children
selected by the Center may appear in instructions on pages that would otherwise be blank. You can help bring these children
home by looking at the photographs and calling 1-800-THE-LOST (1-800-843-5678) if you recognize a child.
How Can You Get More Help?
If you want more information about this form, see Pub. 15 (Circular E), visit our website at IRS.gov, or call 1-800-829-4933
(TDD/TTY for persons who are deaf, hard of hearing, or have a speech disability at 1-800-829-4059) Monday through Friday 7
a.m. to 7 p.m. local time (Alaska and Hawaii follow Pacific time).
For a list of related employment tax topics, visit the IRS website at www.irs.gov/businesses and click on the Employment Taxes link under Businesses Topics. You can order forms, instructions, and publications at www.irs.gov/formspubs or by calling 1-800-TAX-FORM (1-800-829-3676).