Every small and medium business owner is supposed to fill the form 940 before the financial year comes to an end. This form is filled to file the tax return on your company’s waste resources, aka unemployed positions. In case, you have hired workers in your business this year, it becomes extremely important to keep it documented so that you can easily fill the Form 940. Form 940 is the employer’s annual Federation Unemployment Tax Return (FUTA). This form is filled out and submitted to the Internal Revenue Services (IRS).
A Briefing about FUTA:
FUTA provides unemployment funds to the employees who have lost their jobs. So, meanwhile, an unemployed person is looking for another job, FUTA provides him with unemployment compensation which comes from the taxes the employer had paid on the employee’s paycheck.
Any employer who has paid the wages of more than $1,500 to an employee is obliged to fill the Form 940. The standard FUTA is filed at 6% on first $7,000 paid to the employee. Where upto 5.4% is paid by the state, which may vary, only 0.6% is paid by the employer.
Read Steps to Filling Form 940 at Sage 50:
To e-file Form 940, you are required to have a subscription to either Sage Business Care Gold or Sage Business Platinum Gold having e-filing. But before you proceed with e-filing, you must ensure that your Sage 50 tax forms are in compliance with the present government regulations by installing the updates to Latest Payroll Solutions. This form can be printed on a plain paper.
How do you E-file Print Form 940 at Sage 50:
You have to follow this simple process to e-file or print Form 940 at sage 50:
- Go to Reports and Forms menu > Forms >Tax Forms > Report/Form opens up.
- Double click on the Payroll Tax Forms.
- Select and highlight the latest 940 form.
- Select Filing Period > select current
- Click OK > follow the information available on screen.
Reports needed to Verify Information on 940 at Sage 50
Now that you know how to e-file or print Form 940 at Sage 50, it is time to focus on what reports to use to verify the information on Form 940.
To verify information on Form 940 at Sage 50, you would need to have access to the following reports:
- Tax Liability Report
- Yearly Earning Report
- Prerequisite to generate the Tax Liability Report is to generate it in Summary Format for the current year. Also, adjusted Gross and Liability are required to match the information displayed in the boxes 3 and 8 for Form 940 on your Sage 50.
- For Yearly Earning Report, your FUTA report totals should match the information that is available on the Tax Liability Report. Final total should match 940 for box 8.
In case, you find some differences, you are supposed to go through the Tax Liability Report or Yearly Earning Report again, and audit it for each employee to settle the differences.
Now that we have cleared everything to you in a detailed information, you should be able to e-file your Form 940 at Sage 50 using the relevant reports which comply with this tax return form. In case, you still face some difficulty with “report to Verify Information on 940 at Sage 50” the reports or the process, or you want to make any enquiry, you can resolve it by contacting a Sage Professional at the Sage technical helpline. They are a third-party service and provide Sage Technical Assistance worldwide.