3.24.154  Unemployment Tax Returns

Manual Transmittal

November 08, 2013

Purpose

(1) This transmits revised IRM 3.24.154, ISRP System, Unemployment Tax Returns.

Material Changes

(1) IRM 3.24.154.1.3, corrected Program Code 11200 to 11120 in Program Numbers table. Per IRM Interim Procedural Update (IPU) 13U0161 issued 01/18/2013.

(2) Exhibit 3.24.154-4, Section 03 Form 940 / Form 940-PR, Element (5), removed reference of Form 940 in instructions, as it also pertain to Form 940-PR, which is listed in the Section title and also the Source Document or Record. Per IRM IPU 13U0340 issued 02/12/2013

(3) Exhibit 3.24.154-5, Section 03 Form 940 / Form 940-PR, Element (5), removed reference of Form 940 in instructions, as it also pertains to Form 940-PR, which is listed in the Section title and also the Source Document or Record. Per IRM IPU 13U0340 issued 02-12-2013

(4) Exhibit 3.24.154-5, Section 03 Form 940 / Form 940-PR, Element (7), updated Prompt to "LN7" . Per IRM IPU 13U0007 issued 01/02/2013.

(5) Various editorial changes made throughout the text.

Effect on Other Documents

IRM 3.24.154, ISRP System, Unemployment Tax Returns, dated October 26, 2012, (effective date January 1, 2013), is superseded. The following IRM Interim Procedural Updates (IPUs) have been incorporated into this IRM: 13U0007 (issued 01/02/2013), 13U0161 (issued 01/18/2013), and 13U0340 (issued 02/12/2013).

Audience

Data Conversion Operations

Effective Date

(01-01-2014)

Paul J. Mamo
Director, Submission Processing
Wage and Investment Division

3.24.154.1  (01-01-2014)
Introduction

  1. This section provides instructions for entering and verifying data from several control documents and unemployment tax returns using the Integrated Submission and Remittance Processing (ISRP) system.

  2. Form 940 was redesigned in 2005. With that redesign, Form 940-EZ became obsolete. Any Form 940-EZ received should be processed as a Form 940.

  3. Data transcribers will also need to refer to IRM 3.24.38, BMF General Instructions, for general procedures.

3.24.154.1.1  (01-01-2014)
Control Documents

  1. Following are the control documents from which data may be transcribed:

    • Form 813, Document Register

    • Form 1332, Block and Selection Record

    • Form 3893, Re-entry Document Control Slip

3.24.154.1.2  (01-01-2014)
Source Documents

  1. Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return

  2. Form 940–PR, Employer's Annual Federal Unemployment (FUTA) Tax Return

3.24.154.1.3  (01-01-2014)
Form/Program Number/Tax Class and Document Code

  1. FORM PROGRAM NUMBER TAX CLASS and
    DOCUMENT CODE
    Form 940, Form 940–PR 11100, 11120 839, 840

3.24.154.1.4  (01-01-2014)
Required Sections

  1. The instructions in this chapter provide for the Original Entry (OE) termination of a
    record with Section 01.

  2. Section 01 requires 100% Key Verification (KV).

  3. Section 03 must be verified if the zero balance routine fails.

  4. All money fields will be entered in dollars and cents.

3.24.154.2  (01-01-2014)
ISRP Transcription Operation Sheets

  1. The following exhibits represent specific data entry procedures.

Exhibit 3.24.154-1 
Block Header Data Entry

Block Header Data Entry
Source Document or Record:
Form 813 & Form 1332 FOR ORIGINAL INPUT DOCUMENTS
Form 3893 FOR RE-ENTRY DOCUMENTS
Elem. No. Data Element Name Prompt Field Term. Instructions
(1) Service Center (SC) Block Control ABC   The screen displays the Alphanumeric Block Control (ABC) that was entered in the Entry Operator (EOP) Dialog Window. It cannot be changed.
(2) Block Document Locator Number (DLN) DLN (auto) Enter the first 11 digits from:
(a) Form 813 — the "Block DLN" box.
(b) Form 1332 — the "Document Locator Number" box.
(c) Form 3893 — box 2.
The KV EOP will verify the DLN from the first document of the block.
(3) Batch Number BATCH <Enter> Enter the batch number from:
(a) Form 813 or Form 1332 — the "Batch Control Number" box.
(b) Form 3893 — box 3.
If not present, enter the number from the batch transmittal sheet.
(4) Document Count COUNT <Enter> Enter the document count from:
(a) Form 813 or Form 1332 — the circled serial number. If a full block (100 documents) or if a number is not circled, enter 100.
(b) Form 3893 — box 4.
(5) Prejournalized Credit Amount CR <Enter> Enter the amount from:
(a) Form 813 — shown as the "Total" or "Adjusted Total" .
(b) Form 3893 — box 5.
Enter dollars and cents.
(6) Filling <Enter>s   <Enter> Press <Enter> 5 times.
(7) Source Code SOURCE <Enter> If the control document is a Form 3893, enter from box 11 as follows:
(a) R = "Reprocessable" box checked.
(b) N = "Reinput of Unpostable" box checked.
(c) 4 = "SC Reinput" box checked.
If none of the boxes are checked, consult your supervisor who will determine if a source code is required.
If any other control document, press <Enter>.
(8) Year Digit YEAR <Enter> If the control document is a Form 3893, enter the digit from the box 12; otherwise, press <Enter>.
This is a MUST ENTER field if the Source Code is "R" , "N" , or "4" .
(9) Filling <Enter>   <Enter> No entry required.
Press <Enter>.
(10) Remittance Processing System (RPS) Indicator RPS <Enter> Enter a "2" if:
(a) "RPS" is edited or stamped in the upper center margin on Form 813 or Form 1332 or "RRPS" is in the header of Form 1332.
(b) box 13 is checked on Form 3893.

Exhibit 3.24.154-2 
Section 01 Form 940 and Form 940-PR (Program 11100)

SECTION 01
Source Documents or Record:
Form 940 / Form 940–PR
Elem. No. Data Element Name Prompt Field Term. Instructions
(1) Section Number SECT:   Section "01" will always be generated. No entry is required.
(2) Serial Number SER# <Enter> Enter the last two digits of the 13-digit DLN from the upper portion of the form.
If the serial number has been generated by the system, verify that it matches the document being entered.
(3) Check Digit (CD) CD <Enter> Enter the "CD" if present.
(4) Name Control (NC) NC   If the "CD" is not present, enter the "NC" .
(5) Employer Identification Number (EIN) EIN   Enter the EIN from the preprinted label or from the EIN boxes.
For Form 940–PR the EIN may also be located immediately following or under the phrase "Número de Identificación Patronal" .
(6) Address Check ADDRESS CHECK? <Enter> Enter "Y" or "N" as appropriate.
(7) Street Key STREET KEY <Enter> Enter the Street Key.
(8) ZIP Key ZIP KEY <Enter> Enter the ZIP Key.
(9) Tax Year YR <Enter> Enter the Tax Year preprinted on the form or edited to the right of the form title in YY format.
(10) In Care of Name Line C/O NAME <Enter> Enter the in care of name if shown.
(11) Foreign Address FGN ADD <Enter> Enter the foreign address information as shown or edited from the entity area.

Note:

This field will always be disabled for Form 940–PR.

Note:

Ogden Submission Processing Center (OSPC) only.

(12) Street Address ADDR <Enter> Enter the street address information as shown or edited from the address box in the entity area.

Caution:

When transcribing a foreign address from Form 940, enter the foreign city, province and postal code in this field.

(13) City CITY <Enter> Enter the city from the city box in the entity area.

Caution:

When transcribing a foreign address from Form 940, only enter the foreign country code in this field.

(14) State ST <Enter> Enter the standard state abbreviation from the state box in the entity area.

Caution:

When transcribing a foreign address from Form 940, enter a period (.) in this field.

(15) ZIP Code ZIP <Enter> Enter the ZIP Code from the ZIP Code box in the entity area.

Caution:

When transcribing a foreign address from Form 940, leave this field blank. Press <Enter> to continue.

Exhibit 3.24.154-3 
Section 02 Form 940 and Form 940-PR (Program 11100)

SECTION 02
Source Document or Record:
Form 940 / Form 940–PR
Elem. No. Data Element Name Prompt Field Term. Instructions
(1) Section Number SECT: <Enter> Press <Enter> if already present on the screen; otherwise, enter "02" .
(2) Computer Condition Code (CCC) CCC <Enter> Enter the edited code(s) from the space to the right of the phrase "You MUST fill out both pages..." / "Usted DEBE llenar ambas..." (2006 and subsequent year versions) or bottom center margin of page 1 (2005 and prior year versions).

Note:

For Form 940 only, the code(s) can also be edited below line 15.

(3) Schedule Indicator Code (SIC) SIC <Enter> Enter the edited digit from the right margin beside the black title bar for Part 1.
(4) Received Date (RDT) RDT <Enter> Enter the date as stamped or edited on the face of the return or as printed by a cash register in the upper right corner of the return.
If the computer condition code (prompt "CCC" ) is "G" and the document is a non-remittance return, end the document after this element.
If the (prompt "CCC" ) is "G" and the document is a remittance return , press <F6> to proceed to Section 03.
(5) Error Resolution System (ERS) Action Code (AC) ERS <Enter> Enter the edited digits from the bottom left margin of the return.

Exhibit 3.24.154-4 
Section 03 Form 940 and Form 940-PR (Program 11120) (2011)

SECTION 03
Source Document or Record:
Form 940 / Form 940–PR
Elem. No. Data Element Name Prompt Field Term. Instructions
(1) Section Number SECT: <Enter> Press <Enter> if already present on the screen; otherwise, enter "03" .
(2) Payment Received RMT <Enter>
☆☆☆☆☆☆
Enter the green rockered amount from the balance due area of the return or from an attached cash register receipt.
If no amount is edited or the edited amount is illegible, check the control document for the correct amount.
This is a MUST ENTER field if a Prejournalized Credit Amount (prompt "CR" ) was entered in the Block Header.
(3) State Code STCD <Enter> Enter the state code from box 1a.

Note:

For 6020(b) returns, enter the standard state abbreviation for the state shown in the entity area of the return.


Note:

If the computer condition code (prompt "CCC" ) is "G" , press <Enter>.

(4) Multi-State Indicator MCKBX <Enter> Enter "1" if box 1b is checked.
(5) Credit Reduction Checkbox CRBX <Enter> Enter "1" if line 2 box is checked.
(6) Schedule R Indicator 6RTMAR <Enter> Enter the "R" if edited in the right margin of line 6.
(7) Total Taxable Wages L7A <Enter> Enter the amount from line 7a.
(8) Wages Before 7/1/11 L7B <Enter> Enter the amount from line 7b.
(9) Tax on Wages Before 7/1/11 L7C <Enter> Enter the amount from line 7c.
(10) Wages after 6/30/11 L7D <Enter> Enter the amount from line 7d.
(11) Tax on Wages After 6/30/2011 L7E <Enter> Enter the amount from line 7e.
(12) FUTA Tax Before Adjustments LN8 <Enter> Enter the amount from line 8.
(13) Adjustments LN9 <Enter> Enter the amount from line 9.
(14) Excluded Wages/ Late Payments L10 <Enter> Enter the amount from line 10.
(15) Credit Reduction Amount L11 <Enter> Enter the amount from Part I, Line 11.

Note:

For Forms 940–PR, when entering the next three prompts if both Part II and Part III have entries, enter the amounts from Part II and ignore the entries in Part III.

(16) Adjusted Total Taxes L12 <Enter>
☆☆☆☆☆☆
Enter the amount from line 12.
(17) Total Deposits L13 <Enter> Enter the amount from line 13.
(18) Balance Due / Overpayment 14/15 <Enter>
MINUS (-)
☆☆☆☆☆☆
Enter the amount from line 14 or line 15 as follows:
(a) If the amount on line 14 is the same as the Payment Received (Section 03, Element 02), enter a zero (0) then press <Enter>.
(b) If the amount on line 14 is different from the Payment Received, enter the amount from line 14 then press <Enter>.
(c) If there is no amount on line 14, enter the amount from line 15 and press MINUS(-).
(19) Refund Indicator RI <Enter> Enter a "2" if the "Send a refund" / "Envíeme el reembolso" box is checked.

Note:


If the Schedule Indicator is a "1" , prompts "1ST" , "2ND" , "3RD" and "4TH" will not be entered. The next prompt will be "CKBX" .

(20) 1st Quarter Liability 1ST <Enter> Enter the amount from line 16a.
(21) 2nd Quarter Liability 2ND <Enter> Enter the amount from line 16b.
(22) 3rd Quarter Liability 3RD <Enter> Enter the amount from line 16c.
(23) 4th Quarter Liability 4TH <Enter> Enter the amount from line 16d.
(24) Third Party Designee Checkbox CKBX <Enter> Enter a "1" if only the "Yes" / "Sí" box is checked; otherwise, press <Enter>.
(25) Third Party Designee's ID# ID# <Enter> Enter the Third Party Designee's PIN number.
For Form 940–PR, the Third Party Designee's PIN number is located in the five boxes immediately following the phrase beginning "Escoja un número de identificación..." .
(26) Preparer's Taxpayer Identification Number (PTIN) PTIN <Enter> Enter the Paid Preparer's PTIN.
(27) Preparer's Employer Identification Number (EIN) PEIN <Enter> Enter the Preparer's EIN.
(28) Preparer's Telephone # TEL# <Enter> Enter the Preparer's telephone number.

Note:


If BOTH Section 03, prompts "MCKBX" and"CRBX" are blank, the document will end after this section.

Exhibit 3.24.154-5 
Section 03 Form 940 and Form 940-PR (Program 11100) (2012 and Later, 2010 and Prior)

SECTION 03
Source Document or Record:
Form 940 / Form 940–PR
Elem. No. Data Element Name Prompt Field Term. Instructions
(1) Section Number SECT: <Enter> Press <Enter> if already present on the screen; otherwise, enter "03" .
(2) Payment Received RMT <Enter>
☆☆☆☆☆☆
Enter the green rockered amount from the balance due area of the return or from an attached cash register receipt.
If no amount is edited or the edited amount is illegible, check the control document for the correct amount.
This is a MUST ENTER field if a Prejournalized Credit Amount (prompt "CR" ) was entered in the Block Header.
(3) State Code STCD <Enter> Enter the state code from box 1a.

Note:

For 6020(b) returns, enter the standard state abbreviation for the state shown in the entity area of the return.


Note:

If the computer condition code (prompt "CCC" ) is "G" , press <Enter>.

(4) Multi-State Indicator MCKBX <Enter> Enter "1" if box 1b is checked.
(5) Credit Reduction Checkbox CRBX <Enter> Enter "1" if line 2 box is checked.
(6) Schedule R Indicator 6RTMAR <Enter> Enter the "R" if edited in the right margin of line 6.
(7) Total Taxable Wages LN7 <Enter> Enter the amount from line 7.

Note:

If taxpayer files Form 940 for TY 2012 or TY 2010 or Prior, on a TY 2011 Revision form, pick up line 7a as line 7.

(8) FUTA Tax Before Adjustments LN8 <Enter> Enter the amount from line 8.
(9) Adjustments LN9 <Enter> Enter the amount from line 9.
(10) Excluded Wages/ Late Payments L10 <Enter> Enter the amount from line 10.
(11) Credit Reduction Amount L11 <Enter> Enter the amount from Part I, Line 11.

Note:

For Forms 940-PR, when entering the next three prompts if both Part II and Part III have entries, enter the amounts from part II and ignore the entries in Part III.

(12) Adjusted Total Taxes L12 <Enter>
☆☆☆☆☆☆
Enter the amount from line 12.
(13) Total Deposits L13 <Enter> Enter the amount from line 13.
(14) Balance Due / Overpayment 14/15 <Enter>
MINUS (-)
☆☆☆☆☆☆
Enter the amount from line 14 or line 15 as follows:
(a) If the amount on line 14 is the same as the Payment Received (Section 03, Element 02), enter a zero (0) then press <Enter>.
(b) If the amount on line 14 is different from the Payment Received, enter the amount from line 14 then press <Enter>.
(c) If there is no amount on line 14, enter the amount from line 15 and press MINUS(-).
(15) Refund Indicator RI <Enter> Enter a "2" if the "Send a refund" / "Envíeme el reembolso" box is checked.

Note:

If the Schedule Indicator is a "1" , prompts "1ST" , "2ND" , "3RD" , and "4TH" , will not be entered. The next prompt will be "CKBX" .

,
(16) 1st Quarter Liability 1ST <Enter> Enter the amount from line 16a.
(17) 2nd Quarter Liability 2ND <Enter> Enter the amount from line 16b.
(18) 3rd Quarter Liability 3RD <Enter> Enter the amount from line 16c.
(19) 4th Quarter Liability 4TH <Enter> Enter the amount from line 16d.
(20) Third Party Designee Checkbox CKBX <Enter> Enter a "1" if only the "Yes" / "Sí" box is checked; otherwise, press <Enter>.
(21) Third Party Designee's ID# ID# <Enter> Enter the Third Party Designee's PIN number.
For Form 940–PR, the Third Party Designee's PIN number is located in the five boxes immediately following the phrase beginning "Escoja un número de identificación..." .
(22) Preparer's PTIN PTIN <Enter> Enter the Paid Preparer's PTIN.
(23) Preparer's EIN PEIN <Enter> Enter the Preparer's EIN.
(24) Preparer's Telephone # TEL# <Enter> Enter the Preparer's telephone number.

Note:

If BOTH Section 03, prompts "MCKBX" and "CRBX" are blank, the document will end after this section.

Exhibit 3.24.154-6 
Section 05 Form 940 and Form 940-PR (Schedule A (Anexo A) (Program 11100)

SECTION 05, 06 and 07
Source Document or Record:
Form 940 / Form 940–PR (Schedule A (Anexo A)
Elem. No. Data Element Name Prompt Field Term. Instructions
(1) Section Number SECT: <Enter> Press <Enter> if already present on the screen; otherwise, enter "05" , "06" , "07" .

Note:


Schedule A (Section 05, 06, 07) is for use by Multi-State Employers as well as FUTA Wages subject to Credit Reduction. Enter wage amounts when the State Code check box is checked when money amounts are present (including zero $0.00). Also, enter the State Code if a money amount is present and the State Code check box is not checked.
Section 05 should be used for the first 22 state codes/wages.
Section 06 should be used for the next 23 to 44 state codes/wages.
Section 07 should be used for the next 45 to 53 state codes/wages.

(2) State Code Line 1 ST1 <Enter> Enter the state abbreviation shown to the immediate right of the first box marked.
(3) Wages Amount 1 AMT1 <Enter> Enter the amount, if present, from the right of the State Code 1.
(4) State Code 2 ST2 <Enter> Enter the second state abbreviation shown to the immediate right of the second box marked.
(5) Wages Amount 2 AMT2 <Enter> Enter the amount, if present, from the right of the State Code 2.
(6) State Code 3 ST3 <Enter> Enter the third state abbreviation shown to the immediate right of the third box marked.
(7) Wages Amount 3 AMT3 <Enter> Enter the amount, if present, from the right of the State Code 3.
(8) through (44) State Code 4 through 22, etc. ST4 <Enter> Enter the next state abbreviation shown to the immediate right of the next box marked.
(9) through (45) Wages Amount 4 through 22, etc. AMT4 <Enter> Enter the amount, if present, from the right of the next State Code.

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