Q:

What is a 2013 IRS 940 tax form?

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Quick Answer

Form 940 for the year 2013 is used to report the unemployment tax that employers must pay on behalf of eligible employees during any quarter in the years 2012 and 2013, according to IRS Tax Map. Eligible employees are defined as those who earn $1,500 or more during the year or who work at least 20 weeks throughout the tax reporting year, Patriot Software reports.

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Full Answer

The employer’s annual federal unemployment tax act, or FUTA, return should be submitted to the Internal Revenue Service. Business owners who have employees must fill out and submit Form 940 every year when they file annual taxes, Patriot Software reports.

FUTA, along with state-run programs, provides funds for unemployment to employees who have lost their jobs. Unemployment compensation provides employees with monies to help them live while they search for new employment. The funds in FUTA come from the taxes that the employers pay for each employee.

Form 940 is due Jan. 31 of each year, but if that date falls on a weekend, the due date is the following Monday. Small businesses generally pay their entire FUTA tax at once, while larger businesses need to make quarterly payments. Generally, if the FUTA tax due is larger than $500 for one quarter, that tax needs to be paid by the end of the quarter. If the FUTA tax is less than $500, it can be rolled over to the next quarter.

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