940e-file Program with

940 OLF (On-Line Filing) Option

Technical Specifications Guide for the

Electronic Filing of Form 940, Employer’s

Federal Unemployment (FUTA) Tax Return

Department of theTreasury

Internal Revenue Service

www.irs.gov

Publication 3715 (Rev. 8-2005)

Catalog Number 31092K

IRS
1

Contents

Important Changes .........................................................................................................................3

Introduction ..... 3

Purpose of Guidelines .....................................................................................................................3

Scope ............... 4

Program Description and Requirements .........................................................................................4

Business Taxpayers .........................................................................................................................5

Reporting Agents ............................................................................................................................5

Adding and Deleting Taxpayers on the Reporting Agents List ......................................................6

Reporting Agent’s Record Keeping ................................................................................................6

Transmitters .... 6

Software Developer ........................................................................................................................7

IRS Service Contacts/Addresses and Phone Numbers ...................................................................8

Application Processing –Rejection for All e-file and On-Line Applications ..................................8

Security and Passwords ...................................................................................................................8

Submitting Test Files ......................................................................................................................9

Telecommunications .......................................................................................................................9

Modems........... 9

Protocols and Data Transfer Rates ................................................................................................10

Data Compression .........................................................................................................................10

Communications Program ............................................................................................................10

Legal and Administrative Guidelines ...........................................................................................10

Inputting Format (Proprietary- ASCll Format ..............................................................................11

Agent “A” Record - General Information .....................................................................................11
2

Form 940 - Agent “A” Record Layout ..........................................................................................12

Form 940 - Tax Data “B” Records – General Information ...........................................................13

Form 940 - Filing Indicator ..........................................................................................................14

Form 940 - Tax Data “B1” Record Layout ..................................................................................17

Form 940 - Tax Data “B2” Record Layout ..................................................................................25

Form 940 - Tax Data “B3” Record Layout ...................................................................................28

Check Point – Total “C” Records .................................................................................................38

Form 940 – Agent “C” Record Layout .........................................................................................39

Form 940 – Agent “E” Record Layout .........................................................................................40

Acknowledgement Record Layout ...............................................................................................40

Error Reject Codes ........................................................................................................................41

Exemption Codes ..........................................................................................................................42

Electronic Letter of Application Background ...............................................................................48

Electronic Letter of Application Requirements ...........................................................................48

Record Layout for LoA for Business Taxpayers ...........................................................................49

LoA Error Acknowledgements .....................................................................................................51

Glossary ........ 52

State Abbreviations .......................................................................................................................54

Sample of Letters of Application for a Reporting Agent ..............................................................56

Sample of Letter of Application for a Software Developer ..........................................................57

Sample of letter of Application for a Transmitter .........................................................................58

Form 9041 ..... 59

9041 Instructions ...........................................................................................................................60
3

Important Changes

New Exemption code (00) added for Services performed by an inmae of a penal institution.

New Error Codes

There are two new error reject codes for Credit Reduction States.

New Cut off Date for form 940 XML

The April 30 date has been established as the cut off date for the Form 940 XML returns to be received. This 

is not an extension of the return due date..

Introduction

This publication provides procedural guidelines for Reporting Agents, Software Developers 

and Transmitters as well as Business Taxpayers. All of the information found in this Publication 

is based on Rev. Proc. 96-17,1006-1C.B., Rev. Proc.2001-9, and the rules and regulations 

established by the IRS for the electronic filing programs.

The 940e-file and 940 On-Line Filing (940 OLF) Programs are available and are similar to the 

941e-file Program.

The “IRS e-file Business Programs” offer participants quicker processing with fewer errors and 

better security checks. 940e-file is done through a Reporting Agent such as a bank, tax preparer 

or accountant and filed in the Tennessee Computer Center. 940 OLF is prepared, signed and 

transmitted by a Business Taxpayer through a third party Transmitter.

Businesses that qualify to file the 940 EZ by paper may file their 940 by using an e-file method. 

The 940 Telefile is not available at this time.

NOTE: Late or amended 940 forms must be filed on paper.

Purpose of Guidelines

This publication provides technical implementation guidelines for electronic filing of the Form 940, 

Federal Unemployment Tax Act (FUTA) Tax Return. Currently the IRS only offers the Proprietary 

(ASCII format and IRS record layouts) format. This format is required to participate in the 

940e-file Program and Form 940 On-line Filing Program (940 OLF Program).

The technical guidelines for the proprietary electronic Letter of Application (LoA) that is filed 

through a transmitter by Business Taxpayers is also found in this publication.
4

Scope

This publication contains the required data record layouts and communication protocols needed 

to file 940 returns electronically through the Internal Revenue Service’s Electronic Management 

System (EMS), and is provided for use by Software Developers, Reporting Agents, and 

Transmitters of the electronic 940 returns.

An Electronic Filer in the 940e-file Program or 940 OLF Program must use asynchronous 

communications protocols to transmit electronic returns. See page 9 for further information 

regarding communications and formatting requirements.

Program Description and Requirements

EMS is the IRS Front-end processing system used for processing Forms 940 electronically via 

the Business Electronic Filing Program. 940e-file is intended for use by Reporting Agents and 

940 OLF is intended for filers (Businesses) submitting returns through an approved third party 

(Transmitter).

The 940e-file Program is intended for use by Reporting Agents for their clients and Software 

developers for the testing of their products.

The 940 OLF Program is intended to be used by the following:

 • Business Taxpayers

 • Transmitters may develop or utilize (COTS) Software to receive and electronically file 

Forms 940 and electronic LoAs for their clients.

 • Software Developers may participate in the 940 OLF Program for the purpose of testing 

their software, prior to marketing and distribution.

The program requires a letter of application from all participants and must be approved by

the IRS.

 • A paper LoA or Form 9041 is to be filed by Reporting Agents, Software Developers and 

Transmitters.

 • The Business Taxpayer will submit their electronic LoA through the software to their 

selected Transmitter according to the transmitter’s procedures. See page 48 for electronic 

LoA procedures and guidance.
5

How to participate

Business Taxpayers that file one or more Forms 940 for their business. These businesses may 

use Web Based Software to electronically enroll and file the 940. They should select an approved 

third party Transmitter using web site www.irs.gov and file the LoA through that Transmitter. The 

specific instructions for the electronic LoA are found on page 48 of this publication.

The Transmitter will batch your LoA along with others to form a large transmission. After receipt 

and verification of the LoA by the Service Center, the Business Taxpayer is mailed a Personal 

Identification Number (PIN). This is his/her electronic signature for the electronic filing of Form 

940. This (PIN) is used to prepare, sign and file the 940 Tax Returns. This (PIN) should not be 

given to anyone outside your agency. Business Taxpayers sign the return, using the PIN issued 

by the IRS, prior to sending their return to the Transmitter.

Once the Transmitter has received the approval of your LoA and you have received your PIN, 

you are now able to transmit your 940 to the IRS through the transmitter (Taxpayers who already 

have A PIN for the 941program do not need to reapply. They use the same PIN.

Reporting Agents who may be accounting services, franchises, banks, or other persons 

interested in the program should file a paper Letter of Application (LoA) or Form 9041 to the 

Austin Submission Processing Center by August 15th of the year prior to the year of filing. The 

address is found on page 8, a sample of the LoAs is found on page 56.

The Reporting Agent is also responsible for sending a (Reporting Agents List) along with 

a separate authorization, Form 8655 for each Taxpayer they represent.

A Reporting Agents List is a list of clients (business name and business EIN) that have authorized 

the Agent to e-file on their behalf.

NOTE: A revised Authorization is not required to replace an Authorization that was previously 

submitted to the Service, provided that the Authorization places no restriction on the medium for 

filing Form 940, and the Reporting Agent:

 1. Advises his or her clients that their Forms 940 may be filed electronically, and provide the 

clients with the option of rejecting electronic filing as the medium for filing their Forms 940. 

An Agent may use the most efficient and timely method of clearly providing this notification 

to a client.

 2. Immediately removes any client that objects to having the Form 940 filed electronically from 

the Reporting Agent’s electronic filing client base. A client’s rejection of electronic filing for 

their Forms 940 must be submitted in writing to the Agent.

Processing time takes up to 45 days from the time the Service receives the application. 

Upon your acceptance into the e-file Program you will receive a Validated Agents List, 

along with a telephone number to the processing center. The purpose of the telephone 

number is to arrange for a testing transmission. In order to electronically file tax returns, a
6

successful test transmission must be completed prior to the due date of the return. (It 

issuggested that you allow at least 15 days prior to the due date of the return)

After acceptance of a successful test transmission, permanent ETIN and PIN (Personal 

Identification Number) will be issued. A statement of receipt must be returned to the Service 

before these codes will be activated to use.

The Reporting Agent must enter the PIN prior to the transmission session to electronically “sign” 

the returns being submitted.

ADDING AND DELETING TAXPAYERS ON THE REPORTING AGENT’S LIST

After a Reporting Agent is notified that the application for electronic filing of Forms 940 has 

been approved, the Agent may want to add and delete taxpayers from the Agent’s List. To add 

taxpayers, the Agent must submit the added names and EIN’s (Add List) and Authorization (Form 

8655) for each taxpayer added to the 940e-file Program. The Service must validate the Add List 

and return it to the Agent before the Agent can electronically file returns for these taxpayers. 

The Service will generally validate and mail the Add List to the Agent within 10 business days of 

receiving the Add List.

To delete taxpayers, the Agent must submit a list of those taxpayers to be deleted (Delete List) 

and, if known, a short statement indicating which taxpayers will not remain in business.

Reporting Agent must retain the following material for four (4) years after the due date of the 

return, unless otherwise notified by the Service:

 • A complete copy of the electronically filed Form 940

 • A copy of the Service’s acknowledgment of receipt of the return

 • A copy of each authorization

In the transmitting process it is required to retrieve Acknowledgement Files from the Processing 

Center of the prior transmissions before submitting new ones. This is necessary to avoid 

processing errors such as duplications or omissions.

Transmitters must file a paper Letter of Application (LoA) or Form 9041 to the Austin Submission 

Processing Center by August 15th of the year prior to the year of filing the 940. The address is 

found on page 8, a sample of the LoA can be found on page 58 of this publication. Processing 

time takes up to 45 days from the receipt of the application. When you are accepted in the 

On-Line Filing Program you will receive a telephone number to the Processing Center in order 

to arrange for a test transmission.

In order to electronically file tax returns, a successful test transmission must be completed prior 

to the due date of the 940 returns.

After acceptance of a successful test transmission, an access code will be issued. A statement 

of receipt of the access code must be returned before these codes will be activated for use.

The Transmitter does not have signature authority for the Business Taxpayer, but will batch the 

LoAs and transmit them to the IRS. Within two business days after submitting the electronic 

LoAs,Transmitters will retrieve an Acknowledgment File that verifies the submission of the LoAs. 

The Acknowledgement File also verifies for the Transmitter how many LoAs were submitted, how 

many were accepted and how many (if any) were rejected.
7

The Transmitter acts as the intermediary through which acknowledgments and rejections are 

transmitted from the Service to the Business Taxpayer.

Once the ACKNOWLEDGEMENT of the LoA’s for the Business Taxpayers have been accepted 

and are correct the Transmitter may now file the 940 forms.

The Transmitter that files electronically for the On-line Business Taxpayer must;

 • Provide the taxpayer a copy of the taxpayer’s electronically filed Form 940 (this information 

may be provided on a replica of an official form or in any other format that provides all of 

the return information and references the line numbers of the official form)

 • Advise the taxpayer to retain a copy of the return and any supporting material and

 • Provide the taxpayer, upon request, with the date the return was transmitted to the 

Service and the date the Service acknowledged receipt of the taxpayer’s return.

Software Developers may participate in the 940e-file Program and the 940 OLF Program

to Test their Software ONLY.

A Letter of Application (LoA) or Form 9041 must be submitted to the Austin Submission 

Processing Center by October 15th of the year prior to the due date of the return. The address is 

found on page 8, and a sample copy of the LoA can be found on page 57 of this publication.

An Application of a Software Developer should also contain the following:

 • The brand name of the software package, or the development name, if no brand name

 • Whether the software is stand-alone or interfaces with a named payroll package.

Processing time takes up to 45 days. Upon your acceptance you will receive a telephone number 

to contact the Service to make testing arrangements.

NOTE: Acceptance of a Software Developer establishes only that the test Transmission 

was formatted properly and could be processed by the Service. It is not an endorsement 

of the software or of the quality of the Developers’ services. A Software Developer is 

not entitled to electronically file Forms 940 unless a separate application as an Agent or 

Transmitter is submitted and approved.

After acceptance of a successful test transmission, an access code will be issued. A statement 

of receipt of the code must be returned before these codes will be activated for future testing 

purposes.
8

IRS Service Contacts

For LoAs (paper or electronic) and Form 9041

Internal Revenue Service Center

P.O. Box 1231

Austin, TX 78767

ATTN: AUSC Help Desk; Stop 6380

(512) 460-8900

For the 940e-file and On-Line Program (with the exception of LoAs):

Memphis Electronic Filing Help Desk

P. O. Box 30309 AMF Memphis, TN. 38130

ATTN: ELF Unit Stop 26

(901) 546-2690 Ext 7519

Application Processing – Rejection For All e-file/On-Line File Applicants

An application may be rejected for any of the following reasons:

 • Required information not included on application

 • Required attachments missing from application

 • Improperly formatted test transmission

 • Previous Suspension from the Electronic Filing Program

 • Use of an invalid or inactive EIN

 • Failure to submit a successful test transmission within one year of the issuance of the 

test Identification codes.

If an Applicant is denied acceptance into the 940e-file or 940 OLF Program, the Applicant may 

reapply for a subsequent tax year by resubmitting a LoA or Form 9041 and a test file.

Security

Entry into the IRS telecommunications subsystem, the Electronic Management System (EMS) 

requires a Userid / Password, as applicable. A PIN, which is the Electronic Signature for the 

Business Taxpayer and the Reporting Agent, is required for approval of returns when they are 

transmitted to the IRS.

The Userid/Password, and PIN are provided after an applicant has been accepted into the

940e-file Program or the 940 OLF Program.

All participants (Reporting Agents, Transmitters, Software Developers and Business Taxpayers) 

in the 940e-file and 940 OLF Programs must be approved by the IRS. Utilization of the correctly 

assigned PIN, and User ID/Password is required for entry into the system and for the transmission 

of tax return information.

If an electronic LoA fails the IRS record format check or data compliance check, it will be rejected 

individually. A notice to that effect will be returned in the Acknowledgement file for the transmitter 

who in turn will notify the Business Taxpayer.
9

Submitting Test Files

Test files must meet telecommunications specifications standards and pass IRS data and format 

requirements. A prospective Electronic Filer must transmit an initial test electronic transmission 

of Forms 940 (“ test file”) by the test file due date. The test due date is January 10 of year when 

return is filed.

Subsequent test files may be transmitted at any time except during months when Returns are 

filed, unless an exception is granted by the respective e-file Help Desk.

* Transmission of a test file does not constitute the filing of a tax return.

If an Applicant’s test file fails to meet the evaluation criteria, the Applicant must, within 15 days 

of the Service’s notification of the failure, transmit a new test file or contact the Help Desk to 

make other arrangements.

If the applicant fails to submit a successful test file, and it has been more than one year since 

receiving approval to submit test files, the applicant will be notified in writing, and must submit 

a new application.

Telecommunications

Refer to the EMS Trading Partner’s User’s Guide for more information relating to 

telecommunication and interface with EMS.

The 940 e-file Program and the 940 OLF Program use a variety of telecommunications, protocols 

and capabilities. Reporting Agents and Transmitters should contact the respective Help Desk 

when preparing to participate in the program. See page 8 for the Help Desk addresses and 

phone numbers. Help Desk personnel will assist Agents and Transmitters in determining the 

optimal configuration for the Agent ’s/Transmitter’s particular situation. Electronic Filers may 

send multiple 940 Forms within a transmission file.

Modems

The Internal Revenue Service supports a variety of modems and data transfer speeds. Reporting 

Agents and Transmitters should contact their respective e-file Help Desk (page 8) when preparing 

to participate in the 940e-file and 940 OLF Programs to ensure compatibility. Electronic Filers 

may use any Hayes compatible modem or dedicated lines.
10

Protocols and Data Transfer Rates

Periodically, as system needs dictate, the IRS expands its support of the number and variety of 

protocols and transfer speeds supported. Reporting Agents and Transmitters should contact 

their respective e-file Help Desk (Page 8) when preparing to participate in the 940 Program to 

determine the latest IRS capabilities.

Data Compression

The IRS does not require data compression. GZIP software or standard UNIX Compression may 

be used to compress Form 940 transmissions being sent electronically. GZIP is a shareware 

package available on the Internet. If compression is to be used, specify this during your initial 

contact with the respective e-file Help Desk. This specification, however, can be changed during 

any transmission. Using data compression will significantly reduce the size of the file to be 

transmitted and thereby reduce the time and cost of transmitting the file.

Communications Program

The IRS does not require a specific data communications software package. The communication 

software being used should be identified during any transmission session with the 940e-file 

Program or 940 OLF Program. This allows the 940e-file Program and the 940 OLF Program 

software to make adjustments to accommodate the specified software. Contact the respective 

e-file Help Desk with any specific questions.

Legal and Administrative Guidelines

Participants must adhere to all the rules and regulations set up by IRS for the electronic filing 

program. Rev.Proc.2001-9 provides legal and administrative guidelines for participation in the 

e-file and on-line filing programs.

Reporting Agents’ Instructions for the preparation and submitting of Form 8655 are found in 

Rev. Proc. 96-17 dated January 22, 1996.
11

This section of the publication is dedicated to the specific e-file/On-Line 

Data Formats

Data Formats

All IRS Proprietary Form 940 Return files must be in ASCII Format.

All numeric data should be in unsigned ASCII characters (no binary data). There are no fields that 

require signs. All fields must have either numeric or alphabetic characters with the exception of 

the special characters which are allowed in the Name Line and Street Address Fields of Agent 

“A” Record and Tax Data “B” Record. Special characters must be limited to hyphen (-), slash (/), 

and ampersand (&).

All Money Fields should include two decimal positions on the right.

The First Record on each IRS Proprietary 940e-file transmission file must be the Agent Record 

(A Record) that contains Reporting Agent information.

A checkpoint Total “C” Record must be written after each 100 or fewer Tax Data “B1” 

Records.

Each Record (A, B1, B2, B3, C, and E) must be ended with a Line Feed Character (Hex 0A)

creating a record 721 bytes long.

Agent “A” Record General Information

Description: The Agent “A” Record identifies the Reporting Agent who prepares and transmits 

the file. See Record Layout for complete field descriptions and character positions.

 1. Only Form 940 data may be present.

 2. Only one Agent “A” Record can be present on each file.

 3. The Agent “A” Record must be the first record of the file and precede the first Tax Data 

“B” record.

 4. Special characters may only be used in the name and street address fields.

 5. The record length must be 720 characters plus terminating linefeed to make it 721 bytes 

long.

 6. Errors in the data or structure of the “A” record could prevent normal processing of the 

file.
12

FORM 940 AGENT “A” RECORD LAYOUT

The “A” Record identifies the Reporting Agent, the tax year and the type of return being filed, 

and this record must be the first record reported on the file. It precedes the first Tax Data “B” 

Record reported.

Special characters may only be used in the name line and street address fields and must be 

limited to those characters listed in on page 11 under Data Formats.

Element

Number Length Element Name Entry or Definition

1 1 Record Type Must Enter “A”. First character of “A” Record

2 4 Reserved Zero fill.

3 9 EIN-Reporting Agent Required - Must be 9 numeric characters. Do 

not include the hyphen.

4 3 Type of Return Enter “940” Only Form 940 returns allowed

5 9 Reserved Zero fill.

6 40 Name Line 1 - Agent Enter first name line of reporting agent - Left 

justify and fill unused positions with blanks. 

(40 positions)

7 40 Name Line 2 - Agent Enter the second name line of Reporting Agent 

- Left justify and fill unused positions with 

blanks. If not required, blank fill. (40 positions)

8 40 Street Address - Agent Enter street address of reporting agent and 

blank fill unused positions. Street address 

must include number street and apartment or 

suite number (or P.O. Box number if mail is not 

delivered to a street address). Fill with blanks 

if street address not required . (40 positions)

9 20 City - Agent Enter city, town or post office of reporting 

agent. Left justify and fill remaining unused 

positions with blanks. (20 positions)

10 2 State Code - Agent Enter official post office two position state 

code. See State Abbreviations. (2 positions)

11 9 Zip Code - Agent Enter zip code of Reporting Agent. If not using 

extended zip code, left justify and blank fill 

remaining 4 positions. (9 positions)

12 4 Tax Year The 4 digit calendar year for which the Reporting 

Agent is filing (for example, 1999, 2000, 2001, 

2002 etc.). Must be for current year.

13 10 ETR-Job-Number Zero Fill. For IRS use.
13

Element

Number Length Element Name Entry or Definition

14 1 Test-Prod-Indicator Enter “T” for test, or “P” for production (live data)

15 1 Input-Source-Indicator Enter Blank

16 527 Reserved Enter Blanks

17 1 Linefeed

Form 940 Tax Data “B” Records General Information

Description: Tax Data “B” Records (“B1”, “B2”, and “B3”) contain tax information for each filer 

reported by the Reporting Agent.

 General Guidelines and Information.

 1. Only Form 940 data may be present.

 2. There must be a “B1” record associated with each tax return (EIN).

 3. “B2” and “B3” records when required as specified in this document must follow a “B1” 

record. If there are both “B2” and “B3” records all “B3” records must follow “B2” records.

 4. Special characters may only be used in the name and street address fields.

 5. All data must be for the current tax period.

 6. All money amount fields must contain dollars and cents. Money fields are right justified with 

zero filling to the left. All unused amount fields must be zero filled.

 7. Fields identified as indicators must always carry a value.

 8. The record length for each and every “B” record is 720 characters plus a terminating linefeed 

to make it 721 bytes long.

 9. Errors in the data or structure of the “B” record could prevent normal processing of 

the file.
14

Form 940 Filing Indicator

 1. This required field (Element 13 of the “B1” Record) is used to determine how a taxpayer 

completes Form 940. The filing indicator determines what fields are required on the “B1” 

record and also whether a “B3” record is needed. It has no bearing on “B2” Records. Valid 

entries are “0”, “1”, “2”, and “3”.

See Record Layout for detailed explanation of usage.

 2. If the Form 940 Filing indicator is equal to zero (“0”):

 • Only a “B1” Record is required,

 • The state contributions field (Element 15 of the “B1” record) must contain an amount,

 • Element 54-73 (used to compute tentative credit) must be blank or zero filled as 

appropriate,

 • No “B3” Record may be filed for the taxpayer.

 3. If the Form 940 Filing Indicator is equal to one (“1”):

 • Only a “B1” Record is required,

 • The state contributions field (Element 15 of the “B1” record ) must be zero filled,

 • Elements 54-73 of the “B1” record (used to compute tentative credit) must be blank or 

zero filled as appropriate,

 • No “B3” Record may be filed for the taxpayer.

 4. If the Form 940 Filing Indicator is equal to two (“2”):

 • At least one “B3” record as well as a “B1” Record is required,

 • The state contributions field (Element 15 of the “B1” record) must contain an amount. This 

amount must equal the total contributions paid to all state unemployment funds (reported 

as “Contributions Actually Paid to State” in the “B1” and “B3” Records),

 • Tax information for the first state reported must be entered in the following “B1” Record 

fields: State Code Employees (Element 14 of the “B1” record), State Reporting Number 

(Element 16 of the “B1” record), and Element 54-73,

 • Elements 17-19 of the “B1” Record (second, third and fourth State Reporting Number 

fields) must be blank filled,

 • The “B3” Record is used to report additional tax information for the remaining states.

See Record Layout for complete descriptions and usage.
15

 5. If the Form 940 Filing Indicator is equal to three (“3”):

 • A “B1” Record is required,

 • The state contributions field (Element 15 of the “B1” record) must contain an amount. This 

amount must equal the total contributions paid to all state unemployment funds (reported 

as “Contributions Actually Paid to State” in the “B1” and any “B3” Records),

 • Elements 17-19 of the “B1” Record (second, third and fourth State Reporting Number 

fields) must be blank filled,

 • Elements 54-73 of the “B1” record (used to compute tentative credit) must contain some 

data,

 • A “B3” Record would be required if the taxpayer has been assigned more than one state 

reporting number by the state.

See Record Layout for detailed explanation of usage.

 Exemption Codes and Amounts and “B2” Record Requirements.

 1. Exemption codes were established to give taxpayers the capability to claim FUTA 

exemptions through the e-filing system. These codes are updated periodically to reflect 

changes in the law; however, this document does not establish authority for exemptions 

under FUTA. If an exemption that is listed in this Section is not in effect for the tax year 

reported, the exemption code will not be accepted. Refer to Circular E, Publication 15, 

for details regarding exemptions under FUTA. As explained below Exemption Codes and 

correlating Amounts can be reported on both the “B1” and “B2” records. See page 42 of 

this publication for a complete list of exemption codes and their meanings.

 2. Use Elements 33-52 (Exemption Codes and Amounts) of the “B1” record to report the first 

10 combinations of a two position exemption code and an 11 position dollar and cents 

amount of wages exempted.

 3. Use the “B2” record to continue reporting Exemption Codes and Amounts. Up to four (4) 

Agent “B2” records may follow a “B1” record.

See Record Layout for detailed field descriptions and usage.

Tentative Credit and “B3” Record Requirements.

 1. If the taxpayer has indicated that tentative credit must be computed and state contribution 

payments must be made to more than one state (Form 940 Filing Indicator = 2) then at least 

one “B3” record must be present. See Form 940 Filing Indicator explanations and Record 

Layouts for further instructions.

 2. If the taxpayer has indicated that tentative credit must be computed and state contribution 

payments are being made to only state and the state has assigned the taxpayer more than 

one state reporting number (Form 940 Filing Indicator = 3) then one “B3” record must be
16

 present. See Form 940 Filing Indicator explanations and Record Layouts for further 

instructions.

 3. The “B3” Record. See Record Layout for detailed field descriptions and usage; however if 

a “B3” is present:

 • Elements 1- 4 and Elements 5-12 of the “B3” record (first state data group) must contain 

data.

 • Will accommodate up to four additional states data groups each which is comprised of a 

State Code, Credit Reduction Wages (when applicable), a State Reporting Number, and 

the experience group which itself can occur up to 4 times within the parent group. This 

experience rate group is comprised of Taxable Payroll, Date experience rate took effect, 

Date experience rate was changed, State experience rate, and Contributions actually paid 

to State.

 • Only thirteen “B3” Records may be present; regardless of the number of states reported 

for a taxpayer.

 • The first “B3” Record used must follow the “B2” Records (if any are present).
17

FORM 940 AGENT “B1” RECORD LAYOUT

General Information:

 1. “B1” Record is required for each taxpayer. Only one “B1” Record is allowed for a taxpayer 

It must be the first Tax Data “B” Record reported for the taxpayer.

 2. Money amount fields must be right justified with unused positions zero filled.

 3. Special characters may only be used in the name line and street address fields and must be 

limited to those characters listed on page 11 of this publication.

Element

Number Length Element Name Entry or Definition

1 1 Record Type “B” must be first character of each “B1” 

Record.

2 1 Record Subtype “1” must be second character of each “B1” 

Record.

3 35 First Name Line First name line of the taxpayer. The first five

 Employer positions cannot be all blank. Left justify and fill 

unused positions with blanks. (35 positions)

4 35 2nd Name Line Second name line of the taxpayer. If a 

Employer continuation of the first name line, 

left justify and fill remaining unused positions 

with blanks. If not required, blank fill. (35 

positions)

5 4 Name Control Enter the alpha/numeric name control as 

furnished by the Service. (4 positions)

6 35 Street Address – Enter the street address of the employer. The

 Employer first position must be a character. No more 

than one blank position may be used between 

characters. Street address must include 

number, street and apartment or suite number 

(or P.O. Box number if mail is not delivered 

to street address). Left justify and blank fill 

remaining unused positions. (35 positions)

7 20 City - Employer Enter the city, town or post office in which the 

taxpayer is located. The first position must be 

a character. No more than one blank position 

may be used between characters. Left justify 

and fill remaining unused positions with 

blanks. (20 positions)

8 2 St Code - Employer Enter the official post office two character 

state code. See page 54, State Abbreviations. 

(2 positions)

9 9 Zip Code - Employer Enter the zip code of the taxpayer. If an 

expanded zip code is not used, left justify 

and blank fill the four unused positions. (9 

positions)
18

Element

Number Length Element Name Entry or Definition

10 9 EIN - Employer Enter the taxpayer’s EIN. Do not include the 

hyphen. (9 positions)

11 1 Add Change Indicator Entry required - Enter “1” if the taxpayer 

has requested a change of address and the 

taxpayer’s new address has been given in

 elements 6-9 of this record.

 Otherwise, enter zero.

12 1 Final Return Indicator Entry required - Enter “1” if this is a final return.

Otherwise, enter zero.

13 1 Form 940 Filing A one character numeric field used to

 Indicator describe the method in which a taxpayer files 

Form 940.

You must enter:

“0” If the taxpayer has paid all required state contributions and an amount is present. The 

taxpayer is required to make contributions payments to only one state. None of the wages 

subject to FUTA tax is exempt from state unemployment tax.

“1” If the taxpayer has met the requirement to pay all state contributions because the taxpayer 

was granted a zero percent experience rate by the state. The taxpayer is required to make 

contributions payments to only one state. None of the wages subject to FUTA tax is exempt from 

state unemployment tax.

or

If a taxpayer is required to pay contributions to only one state and no state contributions were 

made on a return with no FUTA taxable wages, use Form 940 Filing Indicator “1”.

“2” If the taxpayer must compute tentative credit because the taxpayer is required to make state 

contribution payments to more than one state, and all required state contributions have been paid.

“3” If the taxpayer must compute tentative credit because all or part of wages subject to FUTA 

tax is exempt from state unemployment tax. The taxpayer is required to make payments to only 

one state, and the requirement to pay all state contributions has been met.

NOTE: If a taxpayer does not meet all conditions for any one of the Form 940 Filing Indicators 

outlined above, a paper return must be filed.

Element

Number Length Element Name Entry or Definition

14 2 State Code -Employees Enter a state code. Usually same as positions 

element 8. Would differ if official business 

address is in different state than operations of 

business of the first state reported. See State 

Abbreviations. (2 positions)

15 13 State Contributions Required unless Filing Indicator is a “1”, then 

must be zero filled. The amount paid by the 

taxpayer to all state unemployment funds. (13 

positions)
19

NOTE: State Reporting Numbers instructions: Elements 16-19.

 • The first state reporting number that is reported for the taxpayer must be entered in 

element 16 of this record.

 • Any and all additional state reporting numbers for taxpayers who use filing indicator “0” or 

“1” (element 13) must consecutively follow in elements 17, 18 and 19 (as needed). Blank 

fill unneeded positions.

 • Any and all additional state reporting numbers for taxpayers who must compute tentative 

credit; that is filing indicator is “2” or “3” (element 13) must be reported on the “B3” 

record. Elements 17-19 must be blank.

Reminder: If a taxpayer has been assigned more than four state reporting numbers by a state, 

a paper return must be filed.

Element

Number Length Element Name Entry or Definition

16 15 1st-ST-Reporting-No Enter the state reporting number assigned 

by the state unemployment agency. Do not 

include hyphens or other special characters. 

Left justify and blank fill remaining unused 

positions as necessary. (15 positions)

17 15 2nd-ST-Reporting-No Enter as needed per above instructions. (15 

positions) 18 15 3rd-ST-Reporting-No Enter as 

needed per above instructions. (15 positions)

19 15 4th-ST-Reporting-No Enter as needed per above instructions. (15 

positions)

20 15 Total Payments Required. Enter the amount of total payments 

and include exempt payments made during 

the calendar year for services of employees. 

(15 positions)

21 13 Payments in Excess The maximum taxable wages for employee 

varies with year. Enter only the amount that 

is over the first maximum wage amount 

paid to individual employees. Do not include 

exemption amounts. Do not use the state 

wage limitation. (13 positions)

22 11 Total FUTA Tax Total FUTA Tax required. If filing indicator “0” 

or “1” is used enter Total Gross FUTA Tax plus 

Credit Reduction amount less the Maximum 

credit. If filing indicator “2” or “3” is used, enter 

Total Gross FUTA Tax plus Credit Reduction 

amount less the smaller of Total Tentative 

Credit or Maximum Credit. (11 positions)
20

Element

Number Length Element Name Entry or Definition

23 14 Total Taxes Deposit Required. FTDs for the tax year plus deposited 

overpayment from overpayment from previous 

year (if the taxpayer elected to apply the 

previous year’s overpayment to this tax year). 

(14 positions)

24 11 Overpaid from Previous Amount required only if the taxpayer made

 year an election last year to have overpayment 

applied to the next return. Right justify and 

zero fill remaining unused positions. Enter 

zeros if no amount. (11 positions)

25 14 Balance due amount Right justify and zero fill remaining unused 

positions. Enter zeros if no amount.

26 14 Excess/Credit Amount required if the total taxes deposited 

plus transfer of overpayment from previous 

year exceeds Total FUTA Tax. Right justify 

and zero fill remaining unused positions. Zero 

fill if no amount. (14 positions).

27 1 Credit Elect Indicator Entry Required. Enter zero if Excess/Credit 

is to be applied to next return. Enter “1” if 

Excess/Credit is to be refunded or if amount 

is zero.

28 15 Total Taxes Deposited Required. Tax deposits made for this year (15

 for the tax year. Positions)

NOTE: Elements 29-32 of this record report the quarterly accrual of the federal tax liability 

for unemployment tax. Amounts must be entered in these fields if Total FUTA Tax exceeds 

$100.00.

Element

Number Length Element Name Entry or Definition

29 14 FUTA Tax Liability First quarter federal tax liability for

 For First Quarter unemployment tax. (14 positions).

30 14 FUTA Tax Liability Second quarter federal tax liability for

 For Second Quarter unemployment tax. (14 positions).

31 14 FUTA Tax Liability Third quarter federal tax liability for

 For Third Quarter employment tax. (14 positions).

32 14 FUTA Tax Liability Fourth quarter federal tax liability for

 For Fourth Quarter unemployment Tax. (14 positions).
21

NOTE: Elements 33-52 contain ten combinations of a two position exemption code and 11 

position dollar and cents amount of wages exempted. The exemption codes to be used are 

described on page 42 under Exemption Codes of this publication. Exemption amount fields 

must be right justified with zeroes in any remaining unused positions. All unused exemption code 

fields must be blank filled. All unused exemption amount fields must be zero filled. If entries are 

to be made, begin in elements 33-34 and proceed as necessary. If more than 10 Exemptions and 

Amounts needed use “B2” record.

Element

Number Length Element Name Entry or Definition

33 2 Exemption Code Enter the approved two character numeric 

exemption code for the exemption the taxpayer 

is claiming. Enter blanks if no exemption is 

claimed here.

34 11 Exemption Amount Enter the amount of the exemption for element 

33.Enter zeros if the corresponding exemption 

code field is blank.

35 2 Exemption Code Enter the approved two character numeric 

exemption code for the exemption the taxpayer 

is claiming. Enter blanks if no exemption is 

claimed here.

36 11 Exemption Amount Enter the amount of the exemption for element 

35 Enter zeros if the corresponding exemption 

code field is blank.

37 2 Exemption Code Enter the approved two character numeric 

exemption code for the exemption the taxpayer 

is claiming. Enter blanks if no exemption is 

claimed here.

38 11 Exemption Amount Enter the amount of the exemption for element 

37. Enter zeros if the corresponding exemption 

code field is blank.

39 2 Exemption Code Enter the approved two character numeric 

exemption code for the exemption the taxpayer 

is claiming. Enter blanks if no exemptions are 

claimed here.

40 11 Exemption Amount Enter the amount of the exemption for element 

39 Enter zeros if the corresponding exemption 

code field is blank.

41 2 Exemption Code Enter the approved two character numeric 

exemption code for the exemption the taxpayer 

is claiming. Enter blanks if no exemption is 

claimed here.

42 11 Exemption Amount Enter the amount of the exemption for element 

41 Enter zeros if the corresponding exemption 

code field is blank.
22

Element

Number Length Element Name Entry or Definition

43 2 Exemption Code Enter the approved two character numeric 

exemption code for the exemption the taxpayer 

is claiming. Enter blanks if no exemption is 

claimed here.

44 11 Exemption Amount Enter the amount of the exemption for element 

43. Enter zeros if the corresponding exemption 

code field is blank.

45 2 Exemption Code Enter the approved two character numeric 

exemption code for the exemption the taxpayer 

is claiming. Enter blanks if no exemption is 

claimed here.

46 11 Exemption Amount Enter the amount of the exemption for element 

45 Enter zeros if the corresponding exemption 

code field is blank.

47 2 Exemption Code Enter the approved two character numeric 

exemption code for the exemption the taxpayer 

is claiming. Enter blanks if no exemption is 

claimed here.

48 11 Exemption Amount Enter the amount of the exemption for element 

47 Enter zeros if the corresponding exemption 

code field is blank.

49 2 Exemption Code Enter the approved two character numeric 

exemption code for the exemption the taxpayer 

is claiming. Enter blanks if no exemption is 

claimed here.

50 11 Exemption Amount Enter the amount of the exemption for element 

49 Enter zeros if the corresponding exemption 

code field is blank.

51 2 Exemption Code Enter the approved two character numeric 

exemption code for the exemption the taxpayer 

is claiming. Enter blanks if no exemption is 

claimed here.

52 11 Exemption Amount Enter the amount of the exemption for element 

51Enter zeros if the corresponding exemption 

code field is blank.

NOTE: Elements 53-73 relate to the state identified in element 14 whose state reporting number 

is in element 16 of this record. Elements 54-73 must contain data, only if a tentative credit must 

be computed by the taxpayer (filing indicator “2” or “3”) If filing indicator is a “2” at least one “B3” 

will be required. If filing indicator is a “3” a “B3” will be required only if the taxpayer has been 

assigned more than one state reporting number. Money amounts are dollars and cents. Right 

justify and zero fill remaining unused positions. Zero fill all unused state experience rates and 

money amount fields and Blank fill all unused date fields.
23

Element

Number Length Element Name Entry or Definition

53 13 Credit Reduction Enter wages if the state reported in element

 Wages for Unrepaid 14 of this record is a credit reduction state for 

 Advancest to the States ther tax year. Otherwise, zero fill (13 positions).

NOTE: Elements 54-58 relate to the INITIAL experience rate (as assigned by the state) of the 

state identified in element 14 of this record. If these fields are not needed, blank fill all unused 

date fields. Zero fill all unused state experience rates and money amount fields.

Element

Number Length Element Name Entry or Definition

54 12 Taxable Payroll First entry, taxable payroll under computation

 as define in State Act of tentative credit. (12 positions)

55 4 Date an Experience First entry, from-date of state experience rate

 Rate took effect period (under computation of tentative credit). 

Enter in numeric month and day format 

(MMDD). If continued from previous year, 

enter 0101.

56 4 Date an Experience First entry, to-date of state experience rate

 Rate was changed period (under computation of tentative credit). 

Enter in numeric month and day format 

(MMDD). If the rate is continued to the next 

calendar year, enter 1231.

57 6 State Experience Rate First experience rate entry under computation

 of tentative credit. Expressed as a six position 

decimal.

58 10 Contributions actually First entry for contributions paid to state (under

 paid to state computation of tentative credit). (10 positions) 

NOTE: Elements 59-63 relate to the SECOND experience rate (if asserted) of the state identified 

in element 14 of this record. If these fields are not needed, blank fill all unused date fields. Zero 

fill all unused state experience rates and money amount fields.

Element

Number Length Element Name Entry or Definition

59 12 Taxable Payroll as 2nd entry, taxable payroll under computation

 defined in State Act of tentative credit. (12 positions)

60 4 Date an Experience 2nd entry, from-date of state experience rate

 Rate took effect period under computation of tentative credit). 

Enter in numeric month and day format 

(MMDD). If continued from previous year, 

enter 0101.

61 4 Date an Experience 2nd entry, to-date of state experience rate

 Rate was changed period (under computation of tentative credit). 

Enter in numeric month and day format 

(MMDD). If the rate is continued to the next 

calendar year, enter 1231.
24

Element

Number Length Element Name Entry or Definition

62 6 State Experience Rate 2nd experience rate entry under 

computation of tentative credit. Expressed as 

a six position decimal.

63 10 Contributions actually 2nd entry for contributions paid to state (under

 paid to state computation of tentative credit). (10 

positions)

NOTE: Elements 64-68 relate to the THIRD experience rate (if asserted) of the state identified in 

element 14 of this record. If these fields are not needed, blank fill all unused date fields. Zero fill 

all unused state experience rates and money amount fields.

Element

Number Length Element Name Entry or Definition

64 12 Taxable Payroll as 3rd entry, taxable payroll under computation

 defined in State Act of tentative credit. (12 positions)

65 4 Date an Experience 3rd entry, from-date of state experience rate

 Rate took effect period (under computation of tentative credit). 

Enter in numeric month and day format 

(MMDD). If continued from previous year, 

enter 0101.

66 4 Date an Experience 3rd entry, to-date of state experience rate 

 Rate was changed period (under computation of tentative credit). 

Enter in numeric month and day format 

(MMDD). If the rate is continued to the next 

calendar year enter 1231.

67 6 State Experience Rate 3rd experience rate entry under computation 

of tentative credit. Expressed as a six position 

decimal.

68 10 Contributions actually 3rd entry for contributions paid to state (under

 paid to state computation of tentative credit). (10 positions)

NOTE: Elements 69-73 relate to the FOURTH experience rate (if asserted) of the state identified 

in element 14 of this record. If these fields are not needed, blank fill all unused date fields. Zero 

fill all unused state experience rates and money amount fields.

Element

Number Length Element Name Entry or Definition

69 12 Taxable Payroll as 4th entry, taxable payroll under computation 

 defined in State Act of tentative credit. (12 positions)

70 4 Date an Experience 4th entry, from-date of state experience rate

 Rate took effect period (under computation of tentative credit). 

Enter in numeric month and day format 

(MMDD). If continued from previous year, 

enter 0101.

71 4 Date an Experience 4th entry, to-date of state experience rate

 Rate was changed period (under computation of tentative credit). 

Enter in numeric month and day format 

(MMDD) If the rate is continued to the next 

calendar year enter 1231.
25

Element

Number Length Element Name Entry or Definition

72 6 State Experience Rate 4th experience rate entry under computation 

of tentative credit. Expressed as a six position 

decimal.

73 10 Contributions actually 4th entry for contributions paid to state (under

 paid to state computation of tentative credit). (10 positions)

74 10 Personal-ID-Number Numeric -(Taxpayer’s PIN when file is being

 (PIN) submitted by a transmitter: otherwise Blanks) 

75 30 Reserved Enter blanks

76 1 Linefeed

FORM 940 TAX DATA “B2” RECORD LAYOUT

General Information.

 1. The “B2” Record is a continuation of the taxpayer’s explanation of exempt payments.

 2. This record should be used only if the taxpayer has reasons for exempting payments that 

are in addition to the 10 reported in the “B1” Record.

 3. Data must be present in Elements 1-6 of the “B2” Record.

 4. Up to four (4) “B2” Records may follow a “B1” Record.

 5. Each “B2” Record contains 10 combinations of a two position exemption code and 11 

position dollar and cents amount of wages exempted.

 6. The exemption codes to be used are described on page 42 of this publication.

 7. Exemption amount fields must be right justified with any remaining positions zero filled.

 8. All remaining unused exemption code fields must be blank filled. All remaining unused 

exemption amount fields must be zero filled.

Element

Number Length Element Name Entry or Definition

1 1 Record Type “B” must be the first character of each Form 

940 “B2” record

2 1 Record Subtype “2” must the second character of each Form 

940 “B2” record
26

Element

Number Length Element Name Entry or Definition

3 9 EIN - Employer Enter the taxpayer’s EIN. Do not enter hyphens.

4 2 Sequence Number A unique two character numeric field which 

indicates the order of records in the agent’s 

file. The first “B2” Record for a taxpayer 

will contain a sequence number of “02”. All 

subsequent “B2” Record sequence numbers 

must be incremented by 1.

5 2 Exemption Code Enter the approved two character numeric 

exemption code for the exemption the 

taxpayer is claiming.

6 11 Exemption Amount Enter the amount of the exemption for element 

5.

7 2 Exemption Code Enter the approved two character numeric 

exemption code for the exemption the taxpayer 

is claiming. Enter blanks if no exemption is 

claimed here.

8 11 Exemption Amount Enter the amount of the exemption for element 7 

Enter zeros if the corresponding exemption 

code field is blank.

9 2 Exemption Code Enter the approved two character numeric 

exemption code for the exemption the taxpayer 

is claiming. Enter blanks if no exemption is 

claimed here.

10 11 Exemption Amount Enter the amount of the exemption for element 

9 Enter zeros if the corresponding exemption 

code field is blank.

11 2 Exemption Code Enter the approved two character numeric 

exemption code for the exemption the taxpayer 

is claiming. Enter blanks if no exemption is 

claimed here.

12 11 Exemption Amount Enter the amount of the exemption for element 

11 Enter zeros if the corresponding exemption 

code field is blank.

13 2 Exemption Code Enter the approved two character numeric 

exemption code for the exemption the taxpayer 

is claiming. Enter blanks if no exemption is 

claimed here

14 11 Exemption Amount Enter the amount of the exemption for element 

13 Enter zeros if the corresponding exemption 

code field is blank.

15 2 Exemption Code Enter the approved two character numeric 

exemption code for the exemption the taxpayer 

is claiming. Enter blanks if no exemption is 

claimed here.

16 11 Exemption Amount Enter the amount of the exemption for element 

15 Enter zeros if the corresponding exemption 

code field is blank.
27

Element

Number Length Element Name Entry or Definition

17 2 Exemption Code Enter the approved two character numeric 

exemption code for the exemption the taxpayer 

is claiming. Enter blanks if no exemption is 

claimed here.

18 11 Exemption Amount Enter the amount of the exemption for element 

17 Enter zeros if the corresponding exemption 

code field is blank.

19 2 Exemption Code Enter the approved two character numeric 

exemption code for the exemption the taxpayer 

is claiming. Enter blanks if no exemption is 

claimed here.

20 11 Exemption Amount Enter the amount of the exemption for element 

19 Enter zeros if the corresponding exemption 

code field is blank.

21 2 Exemption Code Enter the approved two character numeric 

exemption code for the exemption the taxpayer 

is claiming. Enter blanks if no exemption is 

claimed here.

22 11 Exemption Amount Enter the amount of the exemption for element 

21 Enter zeros if the corresponding exemption 

code field is blank.

23 2 Exemption Code Enter the approved two character numeric 

exemption code for the exemption the taxpayer 

is claiming. Enter blanks if no exemption is 

claimed here.

24 11 Exemption Amount Enter the amount of the exemption for element 

23 Enter zeros if the corresponding exemption 

code field is blank.

25 577 Reserved Enter blanks

26 1 Linefeed
28

FORM 940 TAX DATA “B3” RECORD LAYOUT

General Information.

 1. The “B3” Record is a continuation of state tax information.

 2. Tax data for the first state reported for a taxpayer must be entered in the “B1” Record.

 3. Up to thirteen (13) Agent “B3” Records may follow a “B1” or “B2” Record.

 4. Money amounts are dollars and cents. Money amounts must be right justified with any 

remaining positions zero filled.

 5. Blank fill unused date fields.

 6. Zero fill unused money amount and state experience rate fields.

 7. If more than four experience rate changes occurred in one year for a given state code and 

reporting number, or if no experience rate was assigned by a state, or if a taxpayer was 

assigned more than four state reporting numbers for a state, a paper return must be filed 

for the taxpayer.

 8. “No experience rate” does not mean a zero percent experience rate. Taxpayers granted a 

zero percent experience rate may file Form 940 Returns electronically.

 9. All groups of state data for a given state code must consecutively follow the first occurrence 

of that state code. Repeat the state code with each additional state reporting number. Do 

not repeat a state reporting number.

Element

Number Length Element Name Entry or Definition

1 1 Record Type “B” must be the first character of each Form 

940 “B3” Record.

2 1 Record Subtype “3” must be the second character of each 

Form 940 “B3” Record

3 9 EIN - Employer Enter the taxpayer’s EIN. Do not enter 

hyphens.

4 2 Sequence Number A unique two character numeric field which 

indicates the order of records in the file. The 

first “B3” Record for a taxpayer will contain 

a sequence number computed by adding 1 

to the sum of all the taxpayer’s “B2” Records 

plus the “B1” Record. The sequence number of 

subsequent “B3” Records must be increased 

by 1.

NOTE: Elements 5-27 relate to the first state (Element 5) reported on this record.
29

Element

Number Length Element Name Entry or Definition

5 2 State Code The two character state code assigned for 

a state (other than that of the taxpayer’s 

residence). See page 54,State Abbreviations.

6 13 Credit Reduction Enter the wages for the state reported in

 Wages for Unrepaid Element 5 of this record if that state is a credit

 Advances to States reduction state for the tax year. Otherwise, 

zero fill. (13 positions)

7 15 State Reporting Number Enter the state reporting number for the 

taxpayer assigned by the state unemployment 

agency. Do not include hyphens or special 

characters. Left justify and blank fill any 

remaining positions. (15 positions)

NOTE: Elements 8-12 relate to the INITIAL experience rate of the state identified in Element 5 of 

this record. If a taxpayer has not been assigned an experience rate by a state, or if the taxpayer 

reports more than four rate changes in one year for a particular state code/reporting number, a 

paper return must be filed.

Element

Number Length Element Name Entry or Definition

8 12 Taxable Payroll as First entry, taxable payroll under computation 

 defined in State Act of tentative credit.

9 4 Date an Experience First entry, from-date of state experience rate

 Rate took effect period (under computation of tentative credit). 

Enter in numeric month and day format 

(MMDD). If continued from previous year, 

enter 0101.

10 4 Date an Experience First entry, to-date of state experience rate 

 Rate was changed period (under computation of tentative credit). 

Enter in numeric month and day format 

(MMDD). If the rate is continued to the next 

calendar year, enter 1231.

11 6 State Experience Rate First experience rate entry under computation 

of tentative credit. Expressed as a six position 

decimal.

12 10 Contributions actually First entry for contributions paid to state

 paid to state (under computation of tentative credit). (10 

positions)

NOTE: Elements 13-17 relate to the SECOND experience rate (if asserted) of the state identified 

in Element 5 of this record. If these fields are not needed, blank fill all unused date fields. Zero fill 

all unused state experience rates and money amount fields.
30

Element

Number Length Element Name Entry or Definition

13 12 Taxable Payroll as 2nd entry, taxable payroll under computation

 defined in State Act of tentative credit.

14 4 Date an Experience 2nd entry, from-date of state experience rate

 Rate took effect period (under computation of tentative credit). 

Enter in numeric month and day format 

(MMDD). If continued from previous year, 

enter 0101.

15 4 Date an Experience 2nd entry, to-date of state experience rate

 Rate was changed period (under computation of tentative credit). 

Enter in numeric month and day format 

(MMDD). If the rate is continued to the next 

calendar year, enter 1231.

16 6 State Experience Rate 2nd experience rate entry under computation 

of tentative credit. Expressed as a six position 

decimal.

17 10 Contributions actually 2nd entry for contributions paid to state (under

 paid to state computation of tentative credit). (10 positions)

NOTE: Elements 18-22 relate to the THIRD experience rate (if asserted) of the state identified in 

element 5 of this record. If these fields are not needed, blank fill all unused date fields. Zero fill 

all unused state experience rates and money amount fields.

Element

Number Length Element Name Entry or Definition

18 12 Taxable Payroll as 3rd entry, taxable payroll under computation

 defined in State Act of tentative credit.

19 4 Date an Experience 3rd entry, from-date of state experience rate

 Rate took effect period (under computation of tentative credit). 

Enter in numeric month and day format 

(MMDD). If continued from previous year, 

enter 0101.

20 4 Date an Experience 3rd entry, to-date of state experience rate

 Rate was changed period (under computation of tentative credit). 

Enter in numeric month and day format 

(MMDD). If the rate is continued to the next 

calendar year, enter 1231.

21 6 State Experience Rate 3rd experience rate entry under computation 

of tentative credit. Expressed as a six position 

decimal.

22 10 Contributions actually 3rd entry for contributions paid to state (under

 paid to state computation of tentative credit). (10 positions)

NOTE: Elements 23-27 relate to the FOURTH experience rate (if asserted) of the state identified 

in Element 5 of this record. If these fields are not needed, blank fill all unused date fields. Zero fill 

all unused state experience rates and money amount fields.
31

Element

Number Length Element Name Entry or Definition

23 12 Taxable Payroll as First entry, taxable payroll under computation

 defined in State Act of tentative credit.

24 4 Date an Experience First entry, from-date of state experience rate

 Rate took effect period (under computation of tentative credit). 

Enter in numeric month and day format 

(MMDD). If continued from previous year, 

enter 0101.

25 4 Date an Experience First entry, to-date of state experience rate

 Rate was changed period (under computation of tentative credit). 

Enter in numeric month and day format 

(MMDD). If the rate is continued to the next 

calendar year, enter 1231.

26 6 State Experience Rate First experience rate entry under computation 

of tentative credit. Expressed as a six position 

decimal.

27 10 Contributions actually First entry for contributions paid to state

 paid to state (under computation of tentative credit). (10 

positions)

NOTE: Elements 28-50 relate to the second state (Element 28) reported on this record. All 

unused state reporting number, date, and state code fields must be blank filled. All unused state 

experience rates and money amount fields must be zero filled.

Element

Number Length Element Name Entry or Definition

28 2 State Code The two character state code assigned for 

a state (other than that of the taxpayer’s 

residence).

29 13 Credit Reduction Enter the wages for the state reported in

 Wages for Unrepaid element 28 of this record if that state is a credit

 advances to states reduction state for the tax year. Otherwise, 

zero fill. (13 positions)

30 15 State Reporting Number Enter the state reporting number for the 

taxpayer assigned by the state unemployment 

agency. Do not include hyphens or special 

characters. Left justify and blank fill any 

remaining positions. (15 positions)

NOTE: Elements 31-35 relate to the INITIAL experience rate of the state reported in Element 

28 of this record. If a taxpayer has not been assigned an experience rate by a state, or if the 

taxpayer reports more than four rate changes in one year for a particular state code/reporting 

number, a paper return must be filed.

Element

Number Length Element Name Entry or Definition

31 12 Taxable Payroll as First entry, taxable payroll under computation

 defined in State Act of tentative credit.

32 4 Date an Experience First entry, from-date of state experience rate

 Rate took effect period (under computation of tentative credit). 

Enter in numeric month and day format 

(MMDD). If continued from previous year, 

enter 0101.
32

Element

Number Length Element Name Entry or Definition

33 4 Date an Experience First entry, to-date of state experience rate

 Rate was changed period (under computation of tentative credit). 

Enter in numeric month and day format 

(MMDD). If the rate is continued to the next 

calendar year, enter 1231.

34 6 State Experience Rate First experience rate entry under computation 

of tentative credit. Expressed as a six position 

decimal.

35 10 Contributions actually First entry for contributions paid to state

 paid to state (under computation of tentative credit). (10 

positions)

NOTE: Elements 36-40 relate to the SECOND experience rate (if asserted) of the state identified 

in element 28 of this record. If these fields are not needed, blank fill all unused date fields. Zero 

fill all unused state experience rates and money amount fields.

Element

Number Length Element Name Entry or Definition

36 12 Taxable Payroll as 2nd entry, taxable payroll under computation

 defined in State Act of tentative credit.

37 4 Date an Experience 2nd entry, from-date of state experience rate

 Rate took effect period (under computation of tentative credit). 

Enter in numeric month and day format 

(MMDD). If continued from previous year, 

enter 0101.

38 4 Date an Experience 2nd entry, to-date of state experience rate

 Rate was changed period (under computation of tentative credit). 

Enter in numeric month and day format 

(MMDD). If the rate is continued to the next 

calendar year, enter 1231.

39 6 State Experience Rate 2nd experience rate entry under computation 

of tentative credit. Expressed as a six position 

decimal.

40 10 Contributions actually 2nd entry for contributions paid to state

 paid to state (under computation of tentative credit). (10 

positions)

NOTE: Element 41-45 relate to the THIRD experience rate (if asserted) of the state identified in 

Element 28 of this record. If these fields are not needed, blank fill all unused date fields. Zero fill 

all unused state experience rates and money amount fields.

Element

Number Length Element Name Entry or Definition

41 12 Taxable Payroll as 3rd entry, taxable payroll under computation

 defined in State Act of tentative credit.

42 4 Date an Experience 3rd entry, from-date of state experience rate

 Rate took effect period (under computation of tentative credit). 

Enter in numeric month and day format 

(MMDD). If continued from previous year, 

enter 0101.
33

Element

Number Length Element Name Entry or Definition

43 4 Date an Experience 3rd entry, to-date of state experience rate

 Rate was changed period (under computation of tentative credit). 

Enter in numeric month and day format 

(MMDD). If the rate is continued to the next 

calendar year, enter 1231.

44 6 State Experience Rate 3rd experience rate entry under computation

 of tentative credit. Expressed as a six position 

decimal.

45 10 Contributions actually 3rd entry for contributions paid to state (under

 paid to state computation of tentative credit). (10 

positions)

NOTE: Elements 46-50 relate to the FOURTH experience rate (if asserted) of the state identified 

in Element 28 of this record. If these fields are not needed, blank fill all unused date fields. Zero 

fill all unused state experience rates and money amount fields.

Element

Number Length Element Name Entry or Definition

46 12 Taxable Payroll as 4th entry, taxable payroll under computation

 defined in State Act of tentative credit.

47 4 Date an Experience 4th entry, from-date of state experience rate

 Rate took effect period (under computation of tentative credit). 

Enter in numeric month and day format 

(MMDD). If continued from previous year, 

enter 0101.

48 4 Date an Experience 4th entry, to-date of state experience rate

 Rate was changed period (under computation of tentative credit). 

Enter in numeric month and day format 

(MMDD). If the rate is continued to the next 

calendar year, enter 1231.

49 6 State Experience Rate 4th experience rate entry under computation 

of tentative credit. Expressed as a six position 

decimal.

50 10 Contributions actually 4th entry for contributions paid to state

 paid to state (under computation of tentative credit). (10 

positions)

NOTE: Elements 51-73 relate to the third state (element 51) reported on this record. All unused 

state reporting number, date, and state code fields must be blank filled. All unused state 

experience rates and money amount fields must be zero filled.

Element

Number Length Element Name Entry or Definition

51 2 State Code The two character state code assigned for 

a state (other than that of the taxpayer’s 

residence).

52 13 Credit Reduction Enter the wages for the state reported in 

 Wages for Unrepaid element 51 of this record if that state is a credit

 advances to states reduction state for the tax year. Otherwise, 

zero fill. (13 positions)

53 15 State Reporting Number Enter the state reporting number for the 

taxpayer assigned by the state unemployment 

agency. Do not include hyphens or special 

characters. Left justify and blank fill any 

remaining positions. (15 positions)
34

NOTE: Elements 54-57 relate to the INITIAL experience rate of the state reported in Element 

51 of this record. If a taxpayer has not been assigned an experience rate by a state, or if the 

taxpayer reports more than four rate changes in one year for a particular state code/reporting 

number, a paper return must be filed.

Element

Number Length Element Name Entry or Definition

54 12 Taxable Payroll as First entry, taxable payroll under computation

 defined in State Act of tentative credit.

55 4 Date an Experience First entry, from-date of state experience rate 

 Rate took effect period (under computation of tentative credit). 

Enter in numeric month and day format 

(MMDD). If continued from previous year, 

enter 0101.

56 4 Date an Experience First entry, to-date of state experience rate

 Rate was changed period (under computation of tentative credit). 

Enter in numeric month and day format 

(MMDD). If the rate is continued to the next 

calendar year, enter 1231.

57 6 State Experience Rate First experience rate entry under computation 

of tentative credit. Expressed as a six position 

decimal.

58 10 Contributions actually First entry for contributions paid to state 

 paid to state (under computation of tentative credit). (10 

positions)

NOTE: Elements 59-63 relate to the SECOND experience rate (if asserted) of the state identified 

in Element 51 of this record. If these fields are not needed, blank fill all unused date fields. Zero 

fill all unused state experience rates and money amount fields.

Element

Number Length Element Name Entry or Definition

59 12 Taxable Payroll as 2nd entry, taxable payroll under computation 

 defined in State Act of tentative credit.

60 4 Date an Experience 2nd entry, from-date of state experience rate

 Rate took effect period (under computation of tentative credit). 

Enter in numeric month and day format 

(MMDD). If continued from previous year, 

enter 0101.

61 4 Date an Experience 2nd entry, to-date of state experience rate

 Rate was changed period (under computation of tentative credit). 

Enter numeric month and day format (MMDD). 

If the rate is continued to the next calendar 

year, enter 1231.

62 6 State Experience Rate 2nd experience rate entry under computation

 of tentative credit. Expressed as a six position 

decimal.

63 10 Contributions actually 2nd entry for contributions paid to state 

 paid to state (under computation of tentative credit). (10 

positions)
35

NOTE: Elements 64-68 relate to the THIRD experience rate (if asserted) of the state identified in 

Element 51 of this record. If these fields are not needed, blank fill all unused date fields. Zero fill 

all unused state experience rates and money amount fields.

Element

Number Length Element Name Entry or Definition

64 12 Taxable Payroll as 3rd entry, taxable payroll under computation 

 defined in State Act of tentative credit.

65 4 Date an Experience 3rd entry, from-date of state experience rate 

 Rate took effect period (under computation of tentative credit). 

Enter in numeric month and day format 

(MMDD). If continued from previous year, 

enter 0101.

66 4 Date an Experience 3rd entry, to-date of state experience rate

 Rate was changed period (under computation of tentative credit). 

Enter in numeric month and day format 

(MMDD). If the rate is continued to the next 

calendar year, enter 1231.

67 6 State Experience Rate 3rd experience rate entry under computation 

of tentative credit. Expressed as a six position 

decimal.

68 10 Contributions actually 3rd entry for contributions paid to state (under 

 paid to state computation of tentative credit). (10 positions)

NOTE: Elements 69-73 relate to the FOURTH experience rate (if asserted) of the state identified 

in Element 51 of this record. If these fields are not needed, blank fill all unused date fields. Zero 

fill all unused state experience rates and money amount fields.

Element

Number Length Element Name Entry or Definition

69 12 Taxable Payroll as 4th entry, taxable payroll under computation 

 defined in State Act of tentative credit.

70 4 Date an Experience 4th entry, from-date of state experience rate 

 Rate took effect period (under computation of tentative credit). 

Enter in numeric month and day format 

(MMDD). If continued from previous year, 

enter 0101.

71 4 Date an Experience 4th entry, to-date of state experience rate 

 Rate was changed period (under computation of tentative credit). 

Enter in numeric month and day format 

(MMDD). If the rate is continued to the next 

calendar year, enter 1231.

72 6 State Experience Rate 4th experience rate entry under computation 

of tentative credit. Expressed as a six position 

decimal.

73 10 Contributions actually 4th entry for contributions paid to state (under

 paid to state computation of tentative credit). (10 positions)
36

NOTE: Elements 74-96 relate to the fourth state (Element 74) reported on this record. All 

unused state reporting number, date, and state code fields must be blank filled. All unused state 

experience rates and money amount fields must be zero filled.

Element

Number Length Element Name Entry or Definition

74 2 State Code The two character state code assigned for 

a state (other than that of the taxpayer’s 

residence) See page 54 of this publication for 

State Abbreviations

75 13 Credit Reduction Enter the wages for the state reported in 

 Wages for Unrepaid element 74 of this record if that state is a credit

 advances to states reduction state for the tax year. Otherwise, 

zero fill. (13 positions)

76 15 State Reporting Number Enter the state reporting number for the 

taxpayer assigned by the state unemployment 

agency. Do not include hyphens or special 

characters. Left justify and blank fill any 

remaining positions. (15 positions)

NOTE: Elements 77-81 relate to the INITIAL experience rate of the state reported in Element 

74 of this record. If a taxpayer has not been assigned an experience rate by a state, or if the 

taxpayer reports more than four rate changes in one year for a particular state code/reporting 

number, a paper return must be filed.

Element

Number Length Element Name Entry or Definition

77 12 Taxable Payroll as First entry, taxable payroll under computation 

 defined in State Act of tentative credit.

78 4 Date an Experience First entry, from-date of state experience rate 

 Rate took effect period (under computation of tentative credit).

Enter in numeric month and day format 

(MMDD). If continued from previous year, 

enter 0101.

79 4 Date an Experience First entry, to-date of state experience rate 

 Rate was changed period (under computation of tentative credit). 

Enter in numeric month and day format 

(MMDD). If the rate is continued to the next 

calendar year, enter 1231.

80 6 State Experience Rate First experience rate entry under computation 

of tentative credit. Expressed as a six position 

decimal.

81 10 Contributions actually First entry for contributions paid to state 

 paid to state (under computation of tentative credit). (10 

positions)

NOTE: Elements 82-86 relate to the SECOND experience rate (if asserted) of the state identified 

Element 74 of this record. If these fields are not needed, blank fill all unused date fields. Zero fill 

all unused state experience rates and money amount fields.
37

Element

Number Length Element Name Entry or Definition

82 12 Taxable Payroll as 2nd entry, taxable payroll under computation 

 defined in State Act of tentative credit.

83 4 Date an Experience 2nd entry, from-date of state experience rate 

 Rate took effect period (under computation of tentative credit). 

Enter numeric month and day format (MMDD). 

If continued from previous year, enter 0101.

84 4 Date an Experience 2nd entry, to-date of state experience rate 

 Rate was changed period (under computation of tentative credit). 

Enter in numeric month and day format 

(MMDD). If the rate is continued to the next 

calendar year, enter 1231.

85 6 State Experience Rate 2nd experience rate entry under computation 

of tentative credit. Expressed as a six position 

decimal.

86 10 Contributions actually 2nd entry for contributions paid to state (under

 paid to state computation of tentative credit). (10 positions)

NOTE: Elements 87-91 relate to the THIRD experience rate (if asserted) of the state identified in 

element 74 of this record. If these fields are not needed, blank fill all unused date fields. Zero fill 

all unused state experience rates and money amount fields.

Element

Number Length Element Name Entry or Definition

87 12 Taxable Payroll as 3rd entry, taxable payroll under computation 

 defined in State Act of tentative credit.

88 4 Date an Experience 3rd entry, from-date of state experience rate 

 Rate took effect period (under computation of tentative credit). 

Enter in numeric month and day format 

(MMDD). If continued from previous year, 

enter 0101.

89 4 Date an Experience 3rd entry, to-date of state experience rate 

 Rate was changed period (under computation of tentative credit). 

Enter in numeric month and day format 

(MMDD). If the rate is continued to the next 

calendar year, enter 1231.

90 6 State Experience Rate 3rd experience rate entry under computation 

 of tentative credit. Expressed as a six position 

decimal.

91 10 Contributions actually 3rd entry for contributions paid to state (under

 paid to state computation of tentative credit). (10 positions)

NOTE: Elements 92-96 relate to the FOURTH experience rate (if asserted) of the state identified 

in Element 74 of this record. If these fields are not needed, blank fill all unused date fields. Zero 

fill all unused state experience rates and money amount fields.
38

Element

Number Length Element Name Entry or Definition

92 12 Taxable Payroll as 4th entry, taxable payroll under computation 

 defined in State Act of tentative credit.

93 4 Date an Experience 4th entry, from-date of state experience rate 

 Rate took effect period (under computation of tentative credit). 

Enter in numeric month and day format 

(MMDD). If continued from previous year, 

enter 0101.

94 4 Date an Experience 4th entry, to-date of state experience rate 

 Rate was changed period (under computation of tentative credit). 

Enter in numeric month and day format 

(MMDD). If the rate is continued to the next 

calendar year, enter 1231.

95 6 State Experience Rate 4th experience rate entry under computation 

of tentative credit. Expressed as a six position 

decimal.

96 10 Contributions actually 4th entry for contributions paid to state (under

 paid to state computation of tentative credit). (10 positions)

98 11 Reserved Enter blanks.

99 1 Linefeed)

Checkpoint Total “C” Records

Description: The “C” Record provides a written checkpoint total after each (including th last) 100 

or fewer “B1” records The “C” record is placed after any “B2” or “B3” records associated with 

the “B1” records. If the number of “B1” records in the file is not a multiple of 100, a “C” record is 

also required after the last “B1” record.

Each “C” Record tallies the total number of each type of “B” record. The sum total FUTA Tax 

of each of the preceding “B1” (Element 22) Records are also totaled on the “C” Record. See 

Record Layout for complete field descriptions and character positions. General guidelines are 

as follows.

 1. Only Form 940 data may be present.

 2. The “C” Record must follow a “B” type Record.

 3. The “C” Record must be followed by a “B1” Record unless the “C” Record is at the end of 

the file and then it must be followed by the End of File “E” Record.

 4. All money amount fields must contain dollars and cents. Money fields are right justified with 

zero filling to the left. All unused amount fields must be zero filled.

 5. The record length must be 720 characters plus terminating linefeed to make it 721 bytes 

long.

 6. Errors in the data or structure of the “C” Record could prevent normal processing of the 

file.
39

Element

Number Length Element Name Entry or Definition

1 1 Record Type “C” must be the first character of each Form 

940 “C” Record.

2 6 Number of “B1” Enter the total “B1” Records tallied per

 Records checkpoint.

3 6 Number of “B2” Enter the total “B2” Records tallied per 

 Records checkpoint.

4 6 Number of “B3” Enter the total “B3” Records tallied per 

 Records checkpoint.

5 16 Total “B1” Enter the sum of the taxes reported in the 

 Record Taxes “B1” Records accumulated per checkpoint.

6 685 Reserved Enter blanks

7 1 Linefeed

End of File “E” Record

Description: The Agent “E” Record is after the last Checkpoint Totals “C” Record and must be 

the last record of the file. The “E” Record contains a count of all Tax Data “B” Records by type 

and the sum Total FUTA Tax on the file.

See Record Layout for complete field descriptions and character positions.

General guidelines

 1. Only Form 940 data may be present.

 2. The “E” Record must follow the last Agent “C” Record.

 3. All money amount fields must contain dollars and cents. Money fields are right justified with 

zero filling to the left. All unused amount fields must be zero filled.

 4. The record length must be 720 characters plus terminating linefeed to make it 721 bytes 

long.

 5. The “E” Record must be the last record on the file.

 6. Errors in the data or structure of the “E” Record could prevent normal processing of the 

file.
40

FORM 940 AGENT “E” RECORD LAYOUT

Element

Number Length Element Name Entry or Definition

1 1 Record Type “E” must be the first character of the Form 

940 “E” Record.

2 6 Number of “B1” Enter the sum of “B1” Records you are 

 Records reporting on the file

3 6 Number of “B2” Enter the sum of “B2” Records you are 

 Records reporting on the file

4 6 Number of “B3” Enter the sum of “B3” Records you are

 Records reporting on the file

5 16 Total “B1” Enter the sum of the taxes on all “B1” Records

 Record Taxes reported on the file.

6 685 Reserved Enter blanks

7 1 Linefeed

ACKNOWLEDGEMENT RECORD LAYOUT

Element

Number Length Element Name Entry or Definition

1 9 EIN-AGENT Alpha/Numeric

2 10 ETR-JOB-NUMBER Alpha/Numeric

3 9 EIN-940 Alpha/Numeric

4 3 Error Code Numeric or Blank

5 3 Error Code Numeric or Blank

6 1 ERR-CD Alpha/Numeric
41

ERROR REJECTION CODES

Reject Codes for Form 940 Returns filed Electronically

 Reject Reject Code description

 Code The error codes are for both 940 efile and OnLine transmissions.

 200 – EIN does not match Trading Partner’s record in the Customer Database

 240 – Test/Production mode does not match Trading Partner test/production indicator in 

Customer Database (CDB).

 245 – First record does not begin with A

 250 – No “E” record found at the end of the file.

 255 – Second record does not begin with B

 260 – A record does not end with a linefeed.

 265 – Invalid Pin

 268 – Create an error condition to reject 940 returns if the credit reduction amount is greater 

than 0 but the credit reduction state code and the credit reduction wage amount are not 

present.

 268 – Crete an error condition to reject 940 returns if the credit reduction state code is 

present and the credit reduction wages is not greater than 0.

 275 – Subtype record is not 1, 2 or 3.

 280 – Trading Partner not registered to file 940 e-file/OLF

 285 – Duplicate EIN

Additional errors that cause the transmission to reject

 Error 

 Code Literal Meaning

 001 FIRST RECORD OF AGENT NOT A-RECORD

 002 LAST RECORD OF AGENT NOT E-RECORD

 003 INVALID REC TYPE

 004 INVALID REC SEQ IN A SEQ CK

 005 INVALID REC SEQ IN B1 SEQ CK

 006 INVALID REC SEQ IN C SEQ CK

 007 INVALID REC SEQ IN E SEQ CK

 008 EIN/SEQ ERR IN B2 RECORD

 009 EIN/SEQ ERR IN B3 RECORD

 010 INVALID TAX PERIOD

 011 DUPLICATE EIN IN B1 RECORD

 015 INVALID EIN AGENT

 020 INVALID NAME LINE 1 AGENT

 025 INVALID CITY AGENT

 030 INVALID STATE CD AGENT

 035 INVALID ZIP CODE AGENT

 040 TYPE OF RETURN NOT FORM 940

 041 MORE THAN 4 “B2” OR MORE THAN 13 “B3” RECORDS

Math and consistency validation checks (U551 errors)

These errors indicate that significant errors were detected in the submitted return.

 551A TXPYR-CREDIT VS OVERPAYMENT

 551C EXEMPT-PAYMENTS EXCEED TOTAL-WAGES-PAID

 551D TOTAL-WAGES EQUAL EXCESS-PAYMENTS
42

Exemption Codes

Note: Some of the following codes are group level exemption codes. If an asterisk is present 

before the exemption code, then a lower level sub classification is present on a later page. If the 

Reporting Agent cannot provide the sub classification, the current classification is sufficient.

 Exemption Special classes of employment

 Code Special types of payments

 00 Services performed by an inmate of a penal institution

 01 Agricultural labor. See Circular A for exceptions.

 03 Domestic service in college clubs, fraternities and sororities if employer paid 

cash wages less than $1000 in any calendar quarter in the current or preceding 

year.

 04 Educational assistance program payments by employer under Section 127 of 

the Code (see Circular E for limitation).

 05 Employers whose taxability depends upon number of employees and who 

meet the requirements set forth in Circular E.

 06 Foreign Governments and International Organizations.

 07 Industrial home worker who is a statutory employee. See Circular E.

 08 Household workers. See Circular E for additional information.

 09 Interns working in hospitals.

 10 Ministers of churches performing duties as same.

 11 Members of religious orders who have taken a vow of poverty and are instructed 

by the order to perform services for the order, agency of the supervising church 

or associated institution.

 12 Members of religious orders who have not taken a vow of poverty and are 

instructed by the order to perform services for the order, agency of the 

supervising church or associated institution.

 13 Reimbursement for moving expenses the taxpayer believes is deductible by 

employee.

 14 Newspaper carrier under age 18 delivering to customers.

 15 Newspaper and magazine vendors buying at fixed prices and retaining excess 

from sales to customers.

 16 Non-cash payments for household work, agricultural labor and service not in 

the course of the employer’s trade or business.
43

 Exemption Special classes of employment

 Code Special types of payments

 17 Patients employed by hospitals.

 18 Railroads, etc., - Payments subject to Railroad Unemployment Insurance 

Act.

 19 Qualified real estate agents and direct sellers. See Circular E for additional 

information.

 20 Service not in the course of the employer’s trade or business other than on a 

farm operated for profit or for household employment in private homes. See 

Circular E for additional information.

 21 Deceased worker’s wages paid to beneficiary or estate after the year of 

worker’s death.

 22 Employees of state governments and political subdivisions, Salaries, wages 

and fees of public officials.

 23 Supplemental unemployment compensation plan benefits.

 24 Dependent care assistance programs (limited to $5,000; $2,500, if married 

filing separately). Exempt to the extent it is reasonable to believe that amounts 

will be excluded from gross income under Section 129 of the Code.

 25 Tips less than $20 in a month.

 26 Employee achievement awards. Exempt to the extent it is reasonable to 

believe the amounts will be excluded from gross income under Section 74© 

of the Code.

 27 Qualified group legal services plan. See Circular E for additional information.

 28 Loans with below-market interest rates. Exempt, unless loans are compensationrelated. See Circular E.

 *30 Workers from any foreign country or its possession lawfully admitted on a 

temporary basis to perform agricultural labor. See Circular E for additional 

details.

 *35 Family employees.

 *40 Federal employees.

 *45 Fishing and related activities.

 *50 Foreign Service by U. S. citizens.

 *55 Insurance agents or solicitors.

 *60 Meals and lodging. See Circular E.

 *65 Non-profit organizations.
44

 Exemption Special classes of employment

 Code Special types of payments

 *70 Retirement and pension plans.

 *75 Sickness or injury payments.

 *80 Students.

 90 Fringe benefits that qualify for exclusion. See Publication 15-B

 91 Group-term life insurance costs, Cafeteria Plans.

 92 Nontaxable scholarships and fellowship grants. Taxability depends on the 

nature of the employment and the status of the organization. See Circular E 

for additional information.

 93 Indian Tribal Government/ subsidiaries/etc. (See Pub. 15)

 Subdivision for Aliens classification

 Exemption Special classes of employment

 Code Special types of payments

 31 Resident aliens performing service outside the U.S and meeting the 

requirements set down in Circular E.

 32 Canadian and Mexican non-resident aliens working in the U.S. who are 

employed in railroad service.

 33 Non-resident alien who is a student, scholar, trainee, teacher, etc., who meets 

the requirements of a non-immigrant alien under Section 101(a)(15) (F) (J), or 

(M) of Immigration and Nationality Act.

 34 Non-resident alien working on American vessel or aircraft outside U.S. Not 

under contract made in the U.S. See Circular E for additional details.

 Subdivisions for Family Employees classification

 Exemption Special classes of employment

 Code Special types of payments

 36 Son or daughter under 21 employed by parent (or by partnership consisting 

only of parents).

 37 Parent employed by son or daughter.

 38 Spouse employed by spouse.
45

Subdivisions for Federal Employees classification

 Exemption Special classes of employment

 Code Special types of payments

 41 Members of uniformed services; Young Adult Conservation Corps, Job Corps, 

or National Volunteer Antipoverty Program or Peace Corps volunteers.

 42 All other federal employees (not performing foreign service). See Circular E.

 Subdivision for Fishing and Related Activities classification

 Exemption Special classes of employment

 Code Special types of payments

 46 Fish, sponges, etc., other than salmon or halibut on vessels of 10 net tons or 

less, and Exemption Code 47 does not apply. See Circular E.

 47 Individual has arrangement with the owner or operator of a boat and the 

individual is not paid cash remuneration, but receives a share of the boat’s 

catch (or proceeds from the sale of the catch), the share depending on 

the boat’s catch. The operating crew of the boat is normally fewer than 10 

individuals. See Circular E.

 48 Salmon or halibut. Exempt if Exemption Code 47 applies. See Circular E.

 Subdivisions for Foreign Service by U.S. Citizens classification

 Exemption Special classes of employment

 Code Special types of payments

 51 U.S Government employee.

 52 For foreign affiliates of American employers and other private employers. See 

Circular E for additional information.

 Subdivisions for Insurance Agents or Solicitors classification

 Exemption Special classes of employment

 Code Special types of payments

 56 Full-time life insurance salesperson. Exempt if not a common law employee or 

if paid solely by commissions.

 57 Other salesperson of life, casualty, etc., insurance. Exempt if not a common 

law employee or if paid solely by commissions.
46

Subdivisions for Meals and Lodging classification

 Exemption Special classes of employment

 Code Special types of payments

 61 Meals furnished for employer’s convenience and on the employer’s premises. 

See Circular E for additional information. See Circular E for additional 

information.

 62 Lodging furnished for employer’s convenience and on the employer’s premises, 

and as a condition of employment. See Circular E for additional information.

 Subdivisions for Non-Profit Organization classification

 Exemption Special classes of employment

 Code Special types of payments

 66 Religious, educational, charitable, etc., organizations described in Section 

501(c)(3) exempt from income tax under Section 501(a) of the Code.

 67 Corporations organized under Act of Congress described in Section 501(c)(1) 

of the Code. Not exempt if employee earns $50 or more in quarter unless 

services excepted by Section 3306(c)(6) of the Code.

 68 Other organizations exempt under Section 501(a) of the Code. Not exempt if 

employee earns $50 or more in quarter. See Circular E for details.

 Subdivisions for Retirement and Pension Plans classification

 Exemption Special classes of employment

 Code Special types of payments

 71 Employer contributions to a simplified employee pension plan (SEP), excluding 

amounts contributed under a salary reduction SEP agreement.

 72 Employer contributions to Section 403(b) annuity contracts.

 73 Retirement and pension plan distributions from a qualified plan.

 74 Employer contributions to a qualified plan.

 Subdivisions for Sickness or Injury Payments classification

 Exemption Special classes of employment

 Code Special types of payments

 76 Workmen’s compensation law.

 77 Certain employer plan payments after the end of 6 calendar months after 

calendar month employee last worked for employer.

 78 No employer plan payments after the end of 6 calendar months after calendar 

month employee last worked for employer.
47

Subdivisions for Students classification

 Exemption Special classes of employment

 Code Special types of payments

 81 Student working for private school, college or university, if enrolled and 

regularly attending classes.

 82 Student performing services for auxiliary nonprofit organization described in 

Section 509(a)(3) of the Code which is organized and operated exclusively for 

the benefit of and supervised or controlled by a school, college or university at 

which the student is enrolled and regularly attending classes.

 83 Student working for a public school, college or university, if enrolled and 

regularly attending classes, and student nurse working for a public hospital, 

unless the services are covered under a Section 218 agreement.

 84 Spouse of student provided the conditions set forth in Circular E are met.

 85 Student enrolled in a full time program at a nonprofit or public educational 

institution, provided the conditions set forth in Circular E are met.

 86 Student nurse working for hospital as incidental part of student nurse’s training, 

where employment is substantially less than full-time, and total earnings are 

nominal.

 87 Students employed by organized camps (Section 3306(c)(20) of the Code).
48

Electronic Letter of Application

Background

Business Taxpayers applying to use a Transmitter in order to batch (accumulate) their returns with 

others to form larger transmissions must submit an electronic LoA using the prescribed formats, 

or a paper LoA. Using appropriate COTS software, Business Taxpayers should complete an LoA 

and forward it to a Transmitter for transmission to the IRS. After successful submission of the 

LoA, the IRS will verify the applicant’s suitability for participation and mail a paper notification of 

approval and a designated PIN to the Business Taxpayer. The PIN will be used by the Business 

Taxpayer to electronically “sign” both their 940 return(s) and the “Consent (s) To disclose” any 

tax data that may be returned electronically by the IRS to the taxpayer through the Transmitter. 

Once this PIN Number has been received, the Business Taxpayer will forward their return(s) to 

their Transmitter which will batch that information with other electronic Forms 940 and submit 

those returns to the IRS for processing.

LoA Transmission Requirements

 • All LoA transmission files must be in ASCII format.

 • Each logical record within a transmission file shall begin with a four byte field.

 • This field will contain a count of the number of bytes within the logical record (including the four 

bytes for the counter itself and all remaining bytes including the Terminus (#) Character).

 • Each logical record within a transmission file shall have the Start-Of-Record Sentinel as its 

second four byte field. The Start-Of-Record Sentinel must be four asterisks (****).

 • Every logical record shall have the record Terminus Character (#) as its last significant byte.

 • The first two records on each LoA transmission file must be the Transmitter records (“TRANA” 

and “TRANB”) which will contain data entered by the Transmitter. The TRANA and TRANB 

records will be followed by any number of Electronic LoA records. The last record of the file 

must be a RECAP record which is used for file and transmission control purposes.

 • No LoA field values shall contain the delimiter (“[” or “]”) or terminus “#” characters.

 • LoA fields shall contain only character (alphanumeric) data. This means all numeric data must 

be unsigned ASCII numeric characters (i.e., no binary data).

 • Only alphanumeric data shall contain special characters. The allowable special character set 

is limited to hyphen (“-”), slash (“/”), period (“.”), comma (“,”) and ampersand (“&”).
49

 LoA TRANA RECORD LAYOUT

FIELD

START

POSITION LENGTH DESCRIPTION/CONTENTS

Byte Count 1 4 Numeric "0120"

Record Sentinel 5 4 Value = " "

Record Identifier 9 6 Value = "TRANA "

Employer Identification

Number of transmitter 15 9

Numeric (Must match Field in TRANB

Record)

Transmitter Name 24 35 Alphanumeric

Type of Transmitter 59 16 Alphanumeric "Preparer" or Preparer's

Agent

Processing Site 75 1 Value = "E"

Transmission Date 76 8 Date, Format = YYYYMMDD

Electronic Transmitter

Identification Number and

Sequence Number

84 7

Numeric LOGIN Identification and two

digit sequence number (Begin at 01, 

increment by one for each file

transmitted)

Julian Day 91 3 Numeric

Transmission Sequence for

Julian Day 94 2

Numeric, begin with "01" and increment

by 1 for each transmission on a given

Julian Day

Acknowledgement

Transmission Format 96 1 Value "A"

Record Type 97 1 Value = "V"

Filler 98 6 Blanks

Reserved 104 13 Blanks

Production/ Test Code 117 1 Alphanumeric, "T" = Test, "P" = 

Production

Transmission Type Code 118 1 Value = "A"

Reserved 119 1 Blanks

Record Terminus

Character

120 1 Value = "#"

LoA TRANB RECORD FORMAT

FIELD

START

POSITION LENGTH DESCRIPTION/CONTENTS

Byte Count 1 4 Numeric, Value = "0120"

Record Sentinel 5 4 Value = "** **"

Record Identifier 9 6 Value = "TRANB "

Employer Identification

Number of transmitter 15 9

Numeric (Must match Field in

TRANA Record)

Transmitter Address 24 35 Alphanumeric

Transmitter City, State, Zip

Code 59 35 Alphanumeric
50

Transmitter Area Code and

Phone Number 94 10 Numeric

Reserved 104 16 Blanks

Record Terminus Character 120 1 Value = "#"

The electronic LoA shall be comprised of the fields described in the table.Table Electronic LoA Fields

LoA

Field

ID Notes Field

Min/Max

Bytes Description

01 * Taxpayer Applicant 1/1 Must be “Yʼ

02 1 Transmitter Applicant 1/1 reserved for future use

03 1 Reporting Agent Applicant 1/1 reserved for future use

04 1 Software Developer 1/1 reserved for future use

05 * Form Type 3/6 Alphanumeric Must be “941” , 

“940” or “940X”

06 * Employer Identification Number 9/9 Numeric

07 * Employer Name 1 1/35 Alphanumeric

08 1 Employer Name 2 1/35 Alphanumeric

09 * Employer Address Line 1 1/35 Alphanumeric

10 1 Employer Address Line 2 1/35 Alphanumeric

11 * Employer City 1/20 Alphanumeric

12 * Employer State 2/2 Alphabetic

13 * Employer Zip 5/9 Numeric

14 * Authorized Agent Name 1/35 Alphanumeric

15 * Authorized Agent Title 1/35 Alphanumeric

16 * Contact Name 1/35 Alphanumeric

17 * Contact Title 1/35 Alphanumeric

18 * Contact Phone Number 10/10 Numeric

19 1 First Filing Quarter, ccyyq 5/5 Numeric, ccyyq

20 1 Estimated Return Volume 2/9 Numeric

21 1 EDI Translation Software Name 1/20 Alphanumeric

22 1 EDI Release Version 6/6 Numeric, e.g., 003030

23 * Signature Name 1/35 Alphanumeric

24 * Signature Date 8/8 Numeric, ccyymmdd

25 1 Standalone Interface Indicator 1/1 Not used, reserved for future

use.

26 1 Email Address 1/75 Alphanumeric

27 1 Email Address 1/75 Alphanumeric

Notes:1 -field is optional

* required – if any required field is missing, the application is rejected

50
51

 LoA RECAP Record Format

FIELD

START

POSITION LENGTH DESCRIPTION/CONTENTS

Byte Count 1 4 Numeric "0120"

Record Sentinel 5 4 Value = "****"

Record Identifier 9 6 Value = "RECAP "

Filler 15 7 Blanks

Filler 22 6 Constant Value = zeroes

Total LoA Counts 28 6 Numeric, Number of LoA Transmitted

ETIN/Transmitter's Use

Code 34 7 Numeric, ETIN assigned by IRS

Julian Day of

Transmission 41 3 Numeric

Transmission sequence

number for Julian Day 44 2

Numeric, begins with 01 and is incremented

by 1 for each transmission per day

Total Accepted LoAs 46 6 Numeric, IRS populate this field with

number of LoAs accepted 

Filler 52 6 Blanks

Total Rejected LoAs 58 6 Numeric, IRS populate this field with

number of LoAs Rejected

Filler 64 12 Blanks

IRS Computed LoA

Count 76 6

Numeric, IRS populate this field with

number of LoAs received

Filler 82 38 Blanks

Record Terminus

Character 120 1 Value = #

LOA Error Acknowledgments

1. "INVALID PROCESSING SITE

DESIGNATOR. E=AUSTIN”

If the Site Designator in column 75

of the TRANA record is not ‘E’ 

(Austin) the EEC will reject the 

transmission.

2. "NON-ASCII FORMAT" If the acknowledgment transmission 

format in column 96 of the TRANA

record is not ‘A’ ascii, the EEC

will reject the transmission. 

3. “INVALID RECORD TYPE“ If the record type in column 97 of 

the TRANA record is not ‘V’ for

variable, the EEC will reject the 

transmission.

4*. “INVALID FORM FORMAT BEGINNING AT

RECORD N”

For LOA transmissions, the message 

is issued if the LOA form does not 

contain [LOA 01].

51
52

General Information

Glossary

Agent’s List: A list of taxpayers to be added to or deleted from the e- filing System.

Alphanumeric: (A/N) - Pertains to the format value of specific fields included in the record layout. 

Alphanumeric format includes A-Z, 0-9, and certain special characters where specified.

ASCII: American Standard Code for Information Interchange.

B: Denotes a blank position.

BMF: Business Master File; an IRS file that contains information related to all businesses known 

to the IRS.

Business Electronic Filing Program: The group of programs run on the EMS which allows for 

the filing of all of the electronic business returns.

EIN: Employer Identification Number, the business counterpart to an individual’s Social Security 

Number.

EMS: Electronic Management System; a component of the IRS’s information systems 

infrastructure which receives, and acknowledges electronically filed tax returns in Cincinnati by 

way of TCC.

FTD: Federal Tax Deposit

FTP: File Transfer Protocol; a widespread standard available on many hardware platforms for 

transporting files between computer systems across a network that connects those systems.

FUTA: Federal Unemployment Tax Act.

IRS Agent: A partner with the IRS who accepts tax returns for the IRS May delete.

IRS Financial Agent: A partner of the IRS and the Financial Management System in processing 

a variety of federal tax payments. Not an authorized signer of tax returns.

Letter of Application (LoA ): The LoA is the vehicle used by a Trading Partner to obtain an EMS 

login/password combination to access the EMS; also used by Reporting Agents and Business 

Taxpayers to obtain a PIN to use as an electronic “signature” for electronically filed Forms 940.

 • Reporting Agents also use the LoA to apply to get into the program with both a Reporting 

Agent’s list identifying all taxpayers for whom the Agent will file Forms 940 electronically and 

a Form 8655 for each taxpayer.

 • The LoA is done electronically for the Business Taxpayer.
53

On-Line Filing (OLF): On-Line Filing, the term used to denote the process whereby individual 

businesses prepare and sign Form 940 Employer’s Federal Unemployment (FUTA) Tax Return or 

Form 941 quarterly tax returns and send them to the IRS through a third-party transmitter.

PIN: A unique confidential Personal Identification Number assigned to each Reporting Agent and 

Business Taxpayer by the IRS. The PIN is issued to the individual with signature authority for the 

returns being transmitted to the IRS.

POA: Power of Attorney.

RAA: Reporting Agent Authorization.

Record: A group of related fields of information, treated as a unit.

Reporting Agent: An Agent authorized to prepare and file Forms 940/941 for a client .

Reporting Agent’s List: A list of taxpayers to be added to or deleted from the e- Filing 

System.

Software Developer: Develops tax form preparation software. The IRS informally grants Software 

Developers permission to act as an electronic Filer and/or Transmitter whose interchange 

transmission indicates “Test ” mode.

Special Character: Any character that is not a numeral, letter or blank.

Taxpayer: A filer of business tax returns who is required to file (e.g., Form 940, Form 941).

Test Mode: The initial mode for all Reporting Agents and Transmitters and the permanent mode 

for all Software Developers. Reporting Agents and Transmitters remain in this mode until they 

have completed their tests and have been authorized to file tax returns using the 940e-file 

Program or the 940 OLF Program.

Taxpayer: Person liable for the payment of tax. The taxpayer will be held responsible for the 

completeness, accuracy and timely submission of tax record.

Transmitter: A service provider who collects Forms 940 and LoAs from Business Taxpayers so 

that they may be reformatted, accumulated (batched) and forwarded to the IRS. Transmitters do 

no have signature authority for those taxpayers that they service

Userid/Password: The entry codes used to sign on to the 940 system. The Userid identifies the 

owner of the password. The password is confidential.
54

State Abbreviations

You must use the following state abbreviations when developing the state code portion of 

address fields. See the note below for APO/FPO addresses.

State Code State Code

Alabama (AL) Montana (MT)

Alaska (AK) Nebraska (NE)

Arizona (AZ) Nevada (NV)

Arkansas (AR) New Hampshire (NH)

American Samoa (AS) New Jersey (NJ)

California (CA) New Mexico (NM)

Colorado (CO) New York (NY)

Connecticut (CT) North Carolina (NC)

Delaware (DE) North Dakota (ND)

District of Columbia (DC) North Mariana Islands (MP)

Federated States of Micronesia (FM) Ohio (OH)

Florida (FL) Oklahoma (OK)

Georgia (GA) Oregon (OR)

Guam (GU) Palau (PW)

Hawaii (HI) Pennsylvania (PA)

Idaho (ID) Puerto Rico (PR)

Illinois (IL) Rhode Island (RI)

Indiana (IN) South Carolina (SC)

Iowa (IA) South Dakota (SD)

Kansas (KS) Tennessee (TN)

Kentucky (KY) Texas (TX)

Louisiana (LA) Utah (UT)

Maine (ME) Vermont (VT)

Marshall Islands (MH) Virginia (VA)

Maryland (MD) Virgin Islands (VI)

Massachusetts (MA) Washington (WA)

Michigan (MI) West Virginia (WV)

Minnesota (MN) Wisconsin (WI)

Mississippi (MS) Wyoming (WY)

Missouri (MO)
55

Note: The following state abbreviations must be used when developing the state code portion 

for APO/FPO addresses:

State Code

Armed Forces the Americas (AA)

Armed Forces Europe (AE)

Armed Forces Pacific (AP)

When reporting APO/FPO addresses use the following format:

Payee Name PVT John M. Doe

Mailing Company F, PSC

Address Box 100

167 Infantry REGT

Payee City APO (or FPO)

*Payee State AE, AA, or AP (*AE is the designation for ZIPs beginning

Payee Zip Code 098010100 with 090-098, AA for ZIP 340 and AP for 

ZIPS 962-966.)
56

Sample Letter of application for a Reporting Agent

Alpha Reporting Agent, Inc

111 Main S

Columbus, NY 11111

EIN – ##-#######

[DATE]

Internal Revenue Service Center

PO Box 1231

Austin, TX 78767

Attn: AUSC Help Desk Stop 6380

To whom it may concern:

This letter is an application to participate in the electronic filing program for Forms 940 

(940e-file).

I understand and agree to the following, which are prerequisites for participation in the 940e-file

Program:

I will keep copies of the Form 8655, Reporting Agent Authorization for Magnetic Tape/Electronic 

Filers (or its equivalent ) on file at my principal place of business for a period no less than required 

under the period of limitation for assessment for the last return filed under its authority. I will 

provide these Authorizations for examination by the Service upon request.

I will abide by the record keeping requirements set forth in Section 2.2 of this Publication

I will provide my clients documentation of filed returns as set forth in Section 2.2 of this 

Publication.

I will comply with all electronic security restrictions , as defined by the rules and regulations set

up by IRS for the electronic filing program, and Section 2.1 of this publication.

I agree to submit returns that meet the eligibility requirements , as defined by the rules and 

regulations set up by IRS for the electronic filing program.

[Name, title] of [firm name] is the individual to contact concerning the userid/password.

[Name] can be reached at [telephone number]. [Name] has read and understands the rules that

apply to the use of the Userid/password.

[Name, title] of [firm name and address] is the designated recipient of the Personal Identification 

Number (PIN). [Name] is authorized to administer and use the PIN as the signature of [firm 

name] to sign and file tax returns in the 940e-file Program.

I will begin submitting returns using the Form 940e-file Program for returns due year 20##. I

estimate that I will be submitting ### returns.

I expect to use [software brand name] software for electronic transmissions.

I have included with this application a Reporting Agent ‘s List and an Authorization for each 

taxpayer on my Reporting Agent’s List .

Please contact [name, title & telephone number] to discuss this letter of application.

[Signature of Electronic Filer’s

Authorized Signatory]
57

Sample Letter of Application for a Software Developer

BBB Application Developers

111 Main St.

Columbus, NY 11111

EIN – ##-#######

[DATE]

Internal Revenue Service Center

PO Box 1231

Austin, TX 78767

Attn: AUSC Help Desk Stop 6380

To whom it may concern:

This letter is an application to participate in the electronic filing program for Forms 940 

(940e-file).

I understand and agree to the following, which is a prerequisite for participation in the 940e-file

Program as a software developer:

I will comply with all electronic security restrictions, as defined by the rules and regulations set 

up by IRS for the electronic filing program, and Section 2.1 of this publication.

[Name, title] of [firm name] is the individual to contact concerning the userid/password.

[Name] can be reached at [telephone number]. [Name] has read and understands the rules 

that apply to the use of the Userid/password.

[Name, title] of [firm name and address] is the designated recipient of the Personal Identification 

Number (PIN). [Name] is authorized to administer and use the PIN as the signature of [firm 

name] to test software for use in filing tax returns in the 940e-file Program.

I will provide software to begin submitting returns using the Form 940e-file Program for returns 

due 20## year.

I will use [name of software brand or development name] for electronic transmissions. The

software package will be marketed to [Reporting Agents, Transmitters]. The software is a

[standalone or payroll package interface].

Please contact [name, title & telephone number] to discuss this letter of application.

[Signature of Software Developer’s

Authorized Signatory]
58

Sample Letter of Application for a Transmitter

CCC Payroll Interline, Inc.

111 Main St.

Columbus, NY 11111

EIN – ##-#######

[DATE]

Internal Revenue Service Center

PO Box 1231

Austin, TX 78767

Attn: AUSC Help Desk Stop 6380

To whom it may concern:

This letter is an application to participate in the electronic filing program for Forms 940 

(940e-file).

I understand and agree to the following, which is a prerequisite for participation in the 940e-file

Program:

I will begin submitting returns using the 940e-file Program for returns due 20##. I estimate that I 

will be submitting #### returns.

I will use [name of software brand or development name] release version [number] for 

electronic transmissions.

Please contact [name, title & telephone number] to discuss this letter of application.

[Signature of Transmitters

Authorized Signatory]