Form 940 Redesign
Business taxpayers and payroll professionals who file Form 940, Annual Federal Unemployment (FUTA) Tax Return, for 2006 will notice a big difference in the form and instructions. The IRS has completely redesigned Form 940 to be more user-friendly. The redesigned Form 940 replaces previous versions of both Form 940-EZ and Form 940, and the single simplified form should make preparing your tax return easier. If you filed Form 940-EZ before, you must now use the redesigned Form 940.
The new Form 940 incorporates the advantages of Form 940-EZ (discontinued for tax year 2006) into a simplified form for all filers. Highlights of the redesigned form include:
- A logical sequence from the taxpayer's point of view
- Information organized into eight segments, breaking up the task into smaller steps
- A new Schedule A for multi-state employers or credit reduction situations
- Check boxes instead of "A, B, C" questions
- New boxes for successor employers, final and amended returns, and for no payments to employees in 2006
- No more need for handwritten explanations of exempt payments
- New section for computing adjustments
- New worksheet for computing adjustments
- Form and instructions to guide you through math calculations
You will need to use the redesigned Form 940 beginning with the tax year 2006 filing that is due by Jan. 31, 2007. The new form should be included in a December payroll update. For more information about payroll updates, visit http://www.quickbooks.com/payrollnews/. If you use QuickBooks 2004, you will need to have the latest QuickBooks product update, as well as the latest payroll update, to use the new form.
Note: IRS forms supported in QuickBooks for active payroll subscribers will not look exactly like the form on the IRS Web site or the preprinted government form you may receive from the IRS. The IRS provides guidelines and allows software developers such as Intuit to reproduce their forms in a different format (i.e., removing gray shaded lines, size of font, etc.), and Intuit Payroll Services follows those guidelines.
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