Form 940 (1979)

Page 4

Computation of Tentative Credit (Complete if You Checked the “No” Box in Either Question A or B on Page 1—See Instructions)

State reporting number(s)

State experience rate period | state

Contributions if
rate had been

Contributions pay-

Additional Contributions

b Taxable payroll experi- he able at experience "

Name of State | as shown on employer's axable ee My credit (col. 6 | actually paid

State contribution retumns | (#8 defined in State act) 4 oe | xe fate (col, minus col.'7) | to State
1 2 3 From— To 8 9

10 Totals

>

11 Total tentative credit (add line 10, columns 8 and 9—see instructions for limitations) .

> I

Specific Instructions
All filers must complete Questions A and B, Part I.

Use Part II if you pay contributions to only one
State unemployment fund, you made all State pay-
ments by the due date of Form 940, and all of the
FUTA wages are subject to the State’s unemployment
fund taxes. Otherwise, complete Parts III and V.

Part |.—Computation of Taxable Wages

Line 1—Total payments.—Enter the total
payments you made to employees for serv-
ices during the calendar year, even if they
are not taxable. Include salaries, wages,
commissions, fees, bonuses, vacation al-
lowances, amounts paid to temporary or
part-time employees, and the value of goods,
lodging, food, and clothing. Enter the
amount before any deductions.

How the payments are made is not im-
portant in determining if they are wages.
Thus, you may pay wages for piecework or
as a percentage of profits, and you may pay
wages hourly, daily, weekly, monthly, or
yearly. You may pay wages in cash or some
other way, such as goods, lodging, food, or
clothing. For items other than cash, use the
fair value at the time of payment.

Line 2—Exempt payments.—Wages”
and “employment” as defined for FUTA pur-
poses do not include every payment and
every kind of service an employee may per-
form. In general, payments excluded from
wages and payments for services excepted
from employment are not subject to tax. You
may deduct these payments from total pay-
ments only if you explain them on line 2.

Enter such items as the following:

(1) Agricultural labor if you (a) paid cash
wages of less than $20,000 for such labor
for each calendar quarter in 1978 and 1979
AND did not employ 10 or more agricultural
workers during any part of a day during any
20 different weeks in 1978 or 1979, OR (b)
paid wages to aliens admitted to the United
States on a temporary basis to perform agri-
cultural labor before 1982.

(2) Benefit payments for sickness or in-
jury under a workmen’s compensation law,
insurance plan, and certain employer plans.

(3) Domestic service if you paid cash
wages of less than $1,000 in each calendar
quarter in 1978 and 1979.

(4) Family employment.

(5) Certain fishing activities.

(6) Any other exempt payments or
services.

For more detailed information,
lar E, Employer's Tax Guide.

Line 3.—Enter the total of the amounts
you paid each employee in excess of $6,000.
For example, if you have 10 employees
whom you paid $8,000 each during the year,
enter $80,000 on line 1 and $20,000 on line
3. The $6,000 wage limitation is for FUTA
Purposes only. Do not use the State wage
limitation for this entry.

see Circu-

Line 5—Total taxable wages.—If any part
of your taxable FUTA wages are exempt from
State contributions, you must fill out Parts |,
lll, IV and V, even if you checked questions
Aand B “Yes.”

Part Il.—Tax Due or Refund

Use this part if you made payments to only one
State by the due date of Form 940, and all your
wages shown on line 5 of Part I are subject to the
State’s unemployment fund taxes.

Lines 2a and 2b.—Enter any FUTA wages
subject to the unemployment compensation
laws of Delaware and Pennsylvania. (If in
doubt, ask your local IRS office.) Multiply the
wages by .003. This adjustment is required
by Internal Revenue Code section 3302(c)
(2). If no wages are subject, enter “none” on
lines 2a and 2b,

Part Ill.—Tax Due or Refund
Use this part if you do not qualify for Part I.
Line 3.—Enter the smaller of (1) line 11,
Part V—Total tentative credit, or (2) line 2,
Part III—2.7% of taxable FUTA wages.

Lines 4a and 4b.—Enter any FUTA wages
subject to the unemployment compensa-
tion laws of Delaware and Pennsylvania. (If
in doubt, ask your local IRS office.) Multiply
the wages by .003. This adjustment is re-
quired by Internal Revenue Code section
3302(c)(2). If no wages are subject, enter
“none” on lines 4a and 4b.

Part IV.—Record of Federal Tax Deposits

Complete this part if your total tax for the year is
over $100. In columns c and d, enter the date and
the amount of the deposit you made for each quarter.

Figure your Federal unemployment tax on
a quarterly basis. Deposit any amount due by
the last day of the first month following the
close of the quarter. (If you do not qualify
as an employer until the second or third
quarter, your deposit requirements do not
begin until then.)

To determine if you must make a deposit
for any of the first three quarters in 1980,
figure the total tax by multiplying by .007
that part of the first $6,000 of each em-
ployee’s annual wages you paid during the
quarter.

If the amount subject to deposit (plus the
undeposited amount for any earlier quarter)
is more than $100, deposit it during the first
month following the quarter. If the amount
is $100 or less, you do not have to deposit
it, but you must add it to the amount subject
to deposit for the next quarter.

If the tax reportable on Form 940 minus
amounts deposited for the year is more than
$100, deposit the entire amount by January
31. If the tax for the year minus all previous
deposits is $100 or less, you can either de-
posit it or pay it with Form 940.

If you deposited the proper amounts, fol-
lowing these rules, the balance due with
Form 940 will never be more than $100.

Deposit Federal unemployment tax in an
authorized financial institution or the Fed-
eral Reserve Bank for your area according
to the instructions on the back of a prein-

‘Ye US. GOVERNMENT PRINTING OFFICE : 1919—-O-283-044

scribed Federal Tax Deposit (FTD) Form 508
which must accompany each deposit.
Preinscribed FTD Forms 508 are mailed
to you once each year (around the end of
March) for your use throughout the year.
The number of cards you receive is based
on your history of payments during the pre-
vious two years. If you do not receive a
supply of cards or need more than the num-
ber sent to you, you can order cards from
any IRS office. Your request should show
your name, address, employer identification
number, the kind of tax (FUTA), the tax
period ending date (December 31), and the
number of cards you need.
Part V.—Computation of Tentative Credit

Complete this schedule if: (1) You made payments
to the unemployment fund of more than one State;
(2) You did not make your State payments by the
due date of Form 940; or (3) Some wages subject to
Federal unemployment tax were exempted from State
taxes. If you have a State experience rate lower than
2.7% for all or part of the year, use columns 1 through
9. If you have no experience rate, use columns 1, 2,
3, and 9 only. If you have a rate of 2.7% or higher,
use columns 1, 2, 3, 4, 5, and 9 only. If you have an
experience rate on part of your payroll, show sepa-
rately in columns 1, 2, 3, and 9 the part that the rate
does not apply to. If you were granted an experience
rate for only part of the year or the rate was changed
during the year, enter in the appropriate columns the
period each separate rate applied to, your payroll
fate, and required contributions for each period.

Column 1.—Enter the name of the State
or States (including Puerto Rico and the U.S.
Virgin Islands) that you were required to pay
contributions to.

Column 2.—Enter the State reporting
number that was assigned to you when you
registered as an employer with your State.

Column 3.—Enter the taxable payroll that
you must pay contributions on to the un-
employment funds of the State in column
1. If your experience rate is zero, enter the
amount of wages that you would have had to
Pay contributions on if the rate had not been
granted.

Columns 4 and 5.—Your State experience
rate is the rate at which the State taxes your
payroll for State unemployment purposes.
This rate may be adjusted from time to time
based on your “experience” with the State
fund, that is, based on the number and
length of claims for unemployment compen-
sation by your former employees against the
fund. If you do not know your rate, you
should contact your State employment se-
curity agency.

Column 8.—Subtract the amount in col-
umn 7 from column 6. If zero or less, enter
zero (0).

Column 9.—Enter the amount of contri-
butions actually paid into the State fund.

Line 11.—Add the total of line 10,
columns 8 and 9. The allowable credit for
State contributions you make after the due
date (or extended due date) for filing Form
940 may not be more than 90% of the credit
that would have been allowed if you had
Paid the State contributions by the due date.

283-044-2


com 940 Employer’s Annual Federal 1979
Department of the Treasury Unemployment Tax Return
Internal Revenue Service
T
7 FF ——
Name (as distinguished from trade name) Calendar Year FD ——
If incorrect, 1979 —
make any rad t ; ; FP
necessary rade name, if any Employer identification number 1 |
change T
Address and ZIP code
a
A Have you paid all required contributions to your State unemployment fund by the due date of Form940?. . . . . . O Yes [J No
If you check the “Yes” box, enter amount of contributions timely paid to your State unemployment fund. . . >.
B Are you required to pay contributions to only one State?. 2 6 6 we eee ee ee ee ee we ee | Pp Yes [JNO

If you check the “Yes” box: (1) Enter the name of the State that you are required to pay contributions to .
(2) Enter your State experience rate(s) for 1979 (see instructions for Part V, columns 4 and 5)

EZ Computation of Taxable Wages (To Be Completed by All Taxpayers)
1 Total payments (including exempt payments) during the calendar year for services of employees .
Exempt Payments Amount paid

2 Exempt payments. (Explain each exemption shown, attaching additional sheets if
necessary) P..

3 Payments for services in excess of $6,000. Enter only the excess over the first $6,000
paid to individual employees exclusive of ‘exempt amounts entered on line 2. Do not
use State wage limitation. . . .

4 Total exempt payments (add lines 2 and 3). see er er)

5 Total taxable wages (subtract line 4 from line 1). (If any portion i is exempt from State contributions, see instructions) .

[2M Tax Due or Refund (Complete if You Checked the “Yes” boxes in Both Items A and B Above)

[Oa

1 FUTA tax. Multiply the wages on line 5, Part |, by.007 andenterhere. . . 2. 2 1 es ew we we __
2 (a) Delaware wages included on line 5, Part! . . B® §. . multiplied by .003 . ___

(b) Pennsylvania wages included on line 5, Part | .. multiplied by .003 __
3 Total FUTA tax (add lines 1, 2a,and 2b). 2 6 ww ee ee ee —
4 Less: Total FUTA tax deposited from line 5,PartIV. 2 6 6 6 ee ee ee ee ee —

5 Balance due (subtract line 4 from line 3—this should not be over $100). Pay to Internal Revenue Service .
6 Overpayment (subtract line 3 from line 4). - .

Tax Due or Refund (Complete if You Checked the TNF "Box in ‘Fither Tem A oF Ttem | B Above
1 Gross FUTA tax. Multiply the wages on line 5, Part I, by.034. 2. 2 6 6 1 we ee ee ee
2 Maximum credit. Multiply the wages on line 5, Part!,by.027. . . . . . ws
3 Enter the smaller of the amount on line 11, Part V, orline2,above. . . . . .
4 (a) Delaware wages included on line 5, Partl . . D> $. multiplied by .003
(b) Pennsylvania wages included on line 5, Part! . D> $. multiplied by .003

5 Credit allowable (subtract lines 4a and 4b fromline3). . . 6 6 6 ew ee ee ee
6 Net FUTA tax (subtract line 5fromlinel). 2 2 2 ee we ee ee he
7 Less: Total FUTA tax deposited from line 5, PartIV. 2 6 6 6 ee ee ee ee ee

rl

8 Balance due (subtract line 7 from line 6—this should not be over $100). Pay to Internal Revenue Service. . >
9 Overpayment (subtract line 6 from line 7). - ares 2
Mittai@m Record of Federal Tax Deposits for Unemployment Tax (Form 508)

a Quarter b. Liability by period ¢. Date of deposit d. Amount of deposit |Z Y
1 First
2 Second
3 Third L
4 Fourth J Uj
5 Total FUTA tax deposited (add column d, lines 1 through 4) (do not include contributions paid to State). . >

If you will not have to file returns in the future, write “Final” here (see general instruction “Who Must File”). . > |

Under penalties of perjury, | declare that | have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and com-
plete, and that no part of any payment made to a State unemployment fund claimed as a credit was or is to be deducted from the payments to employees.

Date > Signature > Title (Owner, etc.) Bm
283-044-2 Form 940 (1979)



Form 940 (1979)

Page 2

Computation of Tentative Credit (Complete if You Checked the “No” Box in Either Question A or B on Page 1—See Instructions)

State reporting number(s)

‘State | Contributions if

Contributions pay-

Additional Contributions

State experience rate period i- i
A) Taxable payroll experi. rate had been able at experience i
Name of State as shown on employer's A credit (col. 6 actually
Slate contribution returns. | (#5 defined in State act) 4 anco | 2.796 fe. gate eol | fimus coe) | to St
1 2 3 From— To 7 8 9

10 Totals...) >

AMMO

11 Total tentative credit (add line 10, columns 8 and 9—see instructions for limitations) .

es |

New Format

This form has been changed so that most employers
will find it much simpler to figure their tax. If you
(a) paid all required contributions to your State un-
employment fund by the due date of this form, and
(b) are required to contribute to only one State, you
only have to complete Parts I, Il, and IV. Otherwise,
you must complete Parts I, Ill, IV, and V.

General Instructions

For more detailed information on which employers
must file, the types of payments defined by law as
wages, and the kind of services covered by the Federal
Unemployment Tax Act (FUTA), see Publication 15,
Circular E, Employer's Tax Guide. Publication 539,
Withholding Taxes and Reporting Requirements (Re-
vised November 1979) has a filled in copy of Form
940. Both publications are available at any Internal
Revenue Service office.

Household employers, see Publication 503, Child
and Disabled Dependent Gare (Revised November
1979). It has an example and a filled in copy of
Form 940 for a household employer.

Purpose of Form 940.—Use it for the an-
nual reporting of tax under FUTA, This tax is
paid only by the employer. The tax rate Is
3.4% on the first $6,000 of wages paid to
each employee during 1979.

Who Must File.—In general, every em-
ployer who during 1979 or 1978 (a) paid
wages of $1,500 in any calendar quarter or
(b) at any time had one or more employees
in any 20 calendar weeks must file. Count
all regular, temporary, and part-time em-
ployees. A partnership should not count its
partners. If there is a change in ownership or
other transfer of business during the year,
each employer who meets tests (a) or (b)
above must file. But neither should report
wages paid by the other. Organizations de-
scribed in section 501(c)(3) do not have to
ile.

As an agricultural or household employer,
you must file Form 940 if any of the follow-
ing apply to you:

(1) You paid cash wages of $20,000 or
more to agricultural workers during any cal-
endar quarter in 1979 or 1978.

(2) You employed 10 or more agricultural
workers during some part of a day (whether
or not at the same time) for at least one day
during any 20 different weeks in 1979 or

(Count aliens admitted to the U.S. on
a temporary basis to perform agricultural
labor in 1980 (after 1980, in the current or
Preceding year) to determine if you meet
either of the above tests. However, wages
paid to these aliens are not subject to FUTA
tax until 1982.

(3) You paid cash wages of $1,000 or
more in any calendar quarter in 1979 or
1978 for domestic service in a private home,
local college club, or a local chapter of a
college fraternity or sorority.

If you receive a form and are not liable
for Federal unemployment tax for 1979,
write “Not Liable” across the front and re-

turn it to IRS. If you will not have to file
returns after this, write “Final” on the line
above the signature line.

If you sold or transferred the business
during the year, attach a statement showing
the name, address, and employer identifica-
tion number (if known) of the new owner.

Once you have filed a Form 940, we will
send you an addressed form near the end
of the year. If you do not receive it, ask for
one from any IRS office in time to file.

Due Date.—Form 940 for 1979 is due by
January 31, 1980. However, if you made
timely deposits in full payment of the tax
due, your due date is February 11, 1980.

Where to File.—

If your principal busi- _File with the Internal
ness, office, or agency Revenue Service
is located in Center at

Vv

New Jersey, New York City and
counties of Nassau, Rockland,
Suffolk and Westchester

New York (all other counties),

Connecticut, Maine,
lassachusetts, New Hampshire,

Rhode Island,” Vermont

District of Columbia, Delaware,
Maryland, Pennsyh

Alabama, Florida, Georgia,
Mississippi, South Carolina

Michigan, Ohio

Arkansas, Kansas, Louisiana,
New Mexico, Oklahoma, Texas

Alaska, Arizona, Colorado,
nesota, Mont

Vv

Holtsville, NY 00501

‘Andover, MA 05501

Philadelphia, PA 19255

Atlanta, GA 31101

Cincinnati, OH 45999

Austin, TX 73301

Nebrask kota, Ogden, UT 84201
Oregon, South Dakota, Utah,
Washington, Wyoming

MMlinois, lowa,
Missouri, Wisconsin
California, Hawaii

Indiana, Kentucky, North

Carolina, Tenness
Virginia, West Virgil

If you have no legal residence or principal place
of business in any IRS district, or if your principal
lace of business is in Puerto Rico or the U.S.
Virgin Islands, file Form 940 with the Internal Rev-
enue Service Center, Philadelphia, PA 19255.
Deposit Requirements.—Please see the
specific instructions for Part IV.

How to Make Deposits.—Follow the in-
structions on the back of the preinscribed
Federal Tax Deposit Form 508.

Employer's Name, Address, and Identifi-
cation Number.—Use the addressed Form
940 mailed to you. If you must use a non-
addressed form, type or print your name,
trade name, address, and employer identifi-
cation number on it.

Penalties and Interest.—Avoid penalties
and interest by filing a correct return and
paying the proper amount of tax when due.
The law provides a penalty for late filing
unless you show reasonable cause for the
delay. If you file late, attach an explanation.

There are also penalties for willful failure
to pay tax, keep records, make returns,
and for filing false or fraudulent returns.

Kansas City, MO 64999
Fresno, CA 97888

Memphis, TN 37501

Taxpayers who willfully claim credit for de-
posits not made are subject to fines and
other criminal penalties.

Credit for Contributions Paid into State
Funds.—You can claim credit for contribu-
tions you pay into a certified State (includ-
ing Puerto Rico and the U.S. Virgin Islands)
gnemployment fund by the due date of Form

“Contributions” are payments that State
law requires you to make to an unemploy-
ment fund because you are an employer.
These payments are “contributions” only to
the extent that they are not deducted or de-
ductible from the employees’ pay.

You may credit contributions against the
tax whether or not you made them for ‘‘em-
ployment.” You may not take credit for vol-
Untary contributions or for penalties or inter-
est payments to a State.

Credit for contributions you make after
the due date (or extended due date) for filing
Form 940 may not be more than 90% of the
amount that would have been allowable if
you had paid the contributions by the due

ate.

If you have been granted an experience
rate lower than 2.7% by a State for the whole
or part of the year, you are entitled to an
additional credit. This credit is equal to the
difference between actual contributions and
the amount you would have been required to
contribute at either the highest rate applied
by the State, or 2.7%, whichever is lower.

The total credit allowable may not be more
than 2.7% of taxable wages.

Special Credit for Successor Employers.—
If you are claiming special credit as a succes-
sor employer, attach a statement showing
(a) the name, address, and employer identi-
fication number of your predecessor; (b)
how you acquired your predecessor's trade
or business (or a separate unit of it); (c) the
date you acquired it; (d) each item in col-
umns 1 through 9 of Part V that applies to
your predecessor; (e) the number of individ-
uals your predecessor employed immediately
before the acquisition, whom you also em-
ployed immediately after the acquisition; (f)
the total payments subject to State un-
employment compensation your predecessor
paid to the employees in (e) above during
the calendar year.

Determine the amount of the special
credit in the following way (use the figures
in columns 1 through 9 of Part V compiled
for your predecessor): Add the ‘additional
credit” (column 8) and ‘‘contributions ac-
tually paid to the State” (column 9). Multi-
ply this total by the fraction whose numer-
ator (top number) is the amount from step
(f) above, and whose denominator (bottom
number) is the “taxable payroll (as defined
in State act)" (column 3) paid to all em-
ployees of your predecessor before you ac-
quired the business during the calendar
year.

(See Specific Instructions on page 4.)

283-044-2


Form 940 Employer’s Annual Federal
Department of the Treasury Unemployment Tax Return

Internal Revenue Service

| 1979

YOUR 2
COPY

A Have you paid all required contributions to your State unemployment fund by the due date of Form 940?. . .

If you check the “Yes” box, enter amount of contributions timely paid to your State unemployment fund. .
B Are you required to pay contributions to only one State?. . 6 6 6 6 ee ee ee ee ee

If you check the “Yes” box: (1) Enter the name of the State that you are required to pay contributions to .

.» . +] Yes [J No

(2)_Enter your State experience rate(s) for 1979 (see instructions for Part V, columns 4 and 5)_. > %,
Computation of Taxable Wages (To Be Completed by All Taxpayers)
1 Total payments (including exempt payments) during the calendar year for services of employees . . . .
Exempt Payments. Amount paid

2 Exempt payments. (Explain each exemption shown, attaching additional sheets if
necessary) P..

ess of $6,000. Enter only the excess over the first $6,000

3

paid to individual employees exclu: of exempt amounts entered on line 2. Do not

use State wage limitation. © © 2 2 6 6 ee ew ee ee ee

4 Total exempt payments (add lines 2 and 3). . 2. 2 ew wee bone eee oe
5 Total taxable wages (subtract line 4 from line 1). (If any portion is exempt from State contributions, see instructions)

MGT Tax Due or Refund (Complete if You Checked the “Yes” boxes in Both Items A and B Above)

1 FUTA tax. Multiply the wages on line 5, Part !, by.0O7 andenterhere. . . . 2 1 1 1 ee we
2 (a) Delaware wages included on line 5, Part! . . B $.. .. multiplied by 003 . .

(b) Pennsylvania wages included on line 5, Part! . D> $. .. Multiplied by .003 . .
3 Total FUTA tax (add lines 1, 2a,and 2b). 6 6 6 ee ee ee ee
4 Less: Total FUTA tax deposited from line 5, PartIV. . . . 2 . es a

5 Balance due (subtract line 4 from line 3—this should not be over $100). Pay to Internal Revenue service oe
6 Overpayment (subtract line 3 from line 4)... oe

iM Tax Due or Refund (Complete if You Checked the TNO" “Box in Either item A oF Tem B Above)

1 Gross FUTA tax. Multiply the wages on line 5, Part I, by .034. . . . . 2. ws

2 Maximum credit. Multiply the wages on line 5, Partl,by.027. . . . 2 1. se
3 Enter the smaller of the amount on line 11, Part V, or line 2, above. . . .
4 (a) Delaware wages included on line 5, Part! . . > $

(b) Pennsylvania wages included on line 5, Part! .
5 Credit allowable (subtract lines 4a and 4b from line3). 6 6 ee ee ee
6 Net FUTA tax (subtract line5fromline1). 2 2. 6 2 6 ee ee ee ee ee ee
7 Less: Total FUTA tax deposited from line 5, PartIV. © 6 6 ew wee ee ee ee ee

8 Balance due (subtract line 7 from line 6—this should not be over $100). Pay to Internal Revenue Service. . >
9 Overpayment (subtract line 6 from line 7). - ee

Ui

rl

[zi;al'am Record of Federal Tax Deposits for ‘Unemployment Tax (Form 508)

a. Quarter b. Liability by period ©. Date of deposit d. Amount of deposit

1 First
2 Second
3 Third
4 Fourth ZU
5 Total FUTA tax deposited (add column d, lines 1 through 4) (do not include contributions paid to State). >
If you will not have to file returns in the future, write “Final” here (see general instruction “Who Must File”) .__- >
Keep This Copy for Your Records For More Information

You must keep this copy and a copy of each related schedule or See Publication 15, Circular E, Employer's Tax Guide, and Publica-
statement for a period of 4 years after the date the tax is due or paid, _tion 539, Withholding Taxes and Reporting Requirements, for more

whichever is later. These copies must be available for inspection detailed information. Household employers should see Publication

by the Internal Revenue Service. 503, Child and Disabled Dependent Care.

283-044-2