What is New of Year 2011 Form 940

Form 940 (Year 2011) – Employer’s Annual Federal Unemployment (FUTA) Tax Return

What’s New

FUTA tax rate. The FUTA tax rate was 6.2% from January 1, 2011, through June 30, 2011 (quarters 1 and 2), and decreased to 6.0% July 1, 2011, through December 31, 2011 (quarters 3 and 4).

Electronic deposit requirement. You must deposit all depository taxes (such as employment tax, excise tax, and corporate income tax) electronically using the Electronic Federal Tax Payment System (EFTPS).For more information about EFTPS or to enroll in EFTPS, visit the EFTPS website at www.eftps.gov, or call 1-800-555-4477. You can also get Pub. 966, The Secure Way to Pay Your Federal Taxes.

Credit reduction state. A state that has not repaid money it borrowed from the federal government to pay unemployment benefits is a “credit reduction state.” The Department of Labor determines these states. If an employer pays wages that are subject to the unemployment tax laws of a credit reduction state, that employer must pay additional federal unemployment tax when filing its Form 940.

Change of address. Beginning in 2012, employers must use new Form 8822-B, Change of Address-Business, for any address change.

Due Date:

The due date for filing Form 940 for 2011 is January 31, 2012. However, if you deposited all your FUTA tax when it was due, you may file Form 940 by February 10, 2012.

Resources:

Federal Income tax Tables

http://www.halfpricesoft.com/federal_income_tax_2012.asp

Form 940 Instructions

http://www.irs.gov/pub/irs-pdf/i940.pdf


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