Total unemployment paid to the state (do not include training taxes)
State and state employer ID number
Total wages for employees for the year
Wages for any employees exempt from federal UI taxes. Do not include
Wages over the $7,000 limit for all employees who paid UI taxes. For example, if Susan was paid $25,000 for the year,
the excess wages for federal purposes is (25,000-7000)=18,000.
Add lines 2 plus 3
Subtract line 4 from line 1
Multiply line 5 by .006
Total FUTA tax that you deposited during the year (if any).
Amount you still owe, line 6 minus line 7.
How to pay
You can either mail the form or file it electronically through a private service.
Mail form 940 to the IRS with any balance due.
The balance due should be less than $500 or quarterly deposits should have been made.
Make the check payable to the IRS and be sure to put your federal employer ID number on it.
Click here for IRS 940 mailing addresses
Businesses that employ 50 or more full time employees must provide IRS 1095-C to their employees and the IRS at the same time W-2's are due (January 31st to employees; February 28th to the IRS).
This report shows the health care plan that was offered to each employee, the employee's share of cost, and whether the offer included health care coverage for the employee's spouse or dependents.
Preparing 1099s is not user-friendly. The IRS does not have a direct way to input the information online. Instead, it has authorized companies to be 1099 providers. Do a search on the Internet for current providers and prices.
Annual reporting requirement
January 31 to the recipient
February 28 to the IRS
To do it yourself
Doing it yourself is possible, but not user-friendly. You have to use official IRS forms and must prepare them using a computer or typewriter (remember those?). Here is how to do it: Prepare 1 form for each payee.
What to do
Payer is your company
Recipient is the person you paid.
Payer's federal identification number is your social security number.
Recipients' identification number is their social security (if you paid an individual
or sole proprietorship), or their SS-4 number if you paid a partnership.
Remember, if you paid a corporation, you do not have complete a 1099-Misc.
Leave "Account Number" blank unless you use vendor account numbers.
Fill in the relevant boxes. Here are the most commonly used.
Rent to landlords (if you paid more than $600).
Compensation to independent contractors for services (if you paid them more than $600).
Check the box if you purchased over $5,000 of products for resale from this (non-corporate) vendor.
How to complete form 1096
1096 is the transmittal form. It must also be prepared on a computer or typewriter. Prepare one form to transmit all the 1099-Misc.
What to do
Your social security number
Enter the number of 1099s you are enclosing
0, unless you withheld income tax (line 4 on each 1099-Misc)
Add up boxes, 1,2,3,5,6,7,8, and 10 for all the 1099-Misc's Usually all but
1 and 7 are 0.
Check box 1099-MISC - 95
How to submit
Mail Copy A of 1099-M (the red page) to the IRS with transmittal Form 1096
Mail or deliver Copy B and Copy 2 to the receipient (the person or company you paid)
Keep copy C for your records
The IRS will automatically send your 1099-M information to the state tax authority.
A few more rules
$50 fine for ignoring these rules:
Type forms - regular type style
Use original forms - no copies
Submit entire 8 x 11 page - don't cut it up
Don't use dollar signs, commas or other symbols, except you should use decimal points to show dollars and cents.