General Instructions

Additional instructions for withholding,
depositing, paying, and reporting Federal
income tax, social security taxes, and Fed-
eral unemployment tax, are contained in
Circular E, Employer’s Tax Guide, avail-
able free from any Internal Revenue office.

efer to Circular E to find which em-
ployers must file Form 940, the types of
payments defined by law as wages, and
the kind of services covered by the Fed-
erai Unemployment Tax Act. .

Purpose of Form 940.—This form is for
the annual reporting of tax under the Fed-
eral Unemployment Tax Act. Federal un-
employment tax is paid by the employer.
It is not deductible from wages paid em-
ployees. The tax rate is 3.2 percent on
the first $4,200 of wages paid to each em-
ployee during 1972.

Who Must File.—Every employer who
during the current or preceding calendar
year paid wages of $1,500 or more in any
calendar quarter, or had ONE or more em-
ployees at any time in each of 20 calendar
weeks must file Form 940. Count all regu-
lar, temporary, and part-time employees.
A partnership should not count its part-
ners. If there is a change of ownership or
other transfer of the business during the
year, each employer who during the current
or preceding calendar year paid wages of
$1,500 or more in calendar quarter, or had
ONE or more employees at any time in
each of 20 calendar weeks must file Form
940, but neither should report wages paid
by the other.

If you receive a preaddressed form and
are not liable for Federal unemployment
tax for 1972, write “Not Liable’ across
the front of the form and return it to
Internal Revenue. If you are no longer in
business at the end of a year, write “Final
Return” in Item 19.

If the business was sold or transferred
during the year, attach a statement show-
ing the name, and address and employer
identification number (if Known) of the
new owner.

‘Once you have filed a Form 940, you
will be sent a preaddressed form near the
close of each calendar year. If you do not
receive a form, request one from any
{Internal Revenue office in time to file when

jue.

Due Date of Return.—Form 940 for cal-
endar year 1972 is due on or before Jan-
uary 31, 1973. However, if timely deposits
were made in full payment of the tax due
for the year, the return may be filed on
or before February 10, 1973.

Where to file.
it Your principal busi-
ness, office, or agency
is located in Use address
w
New Jersey, New York City Internal Revenue Service Center
and countiés of Naseay, 1040 Waverly Avanue
I, Suffolk, and Holtsville, New York 11799
Westchester
New York (all other coun- Inter al Revenue Service Center
ties), Connecticut, Maine, 310
Massachusett, Ne Andover Massachusetts 01812
Hampatire, f Finode

faylend:
Pennsylvania

Alabama, Flor internal Revenue Service Center

Georgia,” Mississippi, {G00 Butord Highway.

South Carolina Chamblee, Georgia” 30006

Michigan, Ohio, intemal Revenue Service Center

Cincinnati, Ohio 45298

‘rkaraas, Ware

Louisiana, New: Mexico,

Oklahoma, Texas

‘Mask, Arizona, Colo. Revenue Survice Center
Aiectaane Mioneseta,  te0 We st 1200 South St

Montana, Nebraske,
vada, North Dakota, Ore-
a, Soutn Dota, Uk,
Washington, Wyoming
‘Mlinois, Towa, Missouri,
Wisconsin

84405

Internal Revenue Service Center
2306 E. Bannister Road
Kansas City, Missouri 64170

Internal Revenue Service Center
‘5045 East Butler Avenue,
Fresno, California 93730
Internal Revenue Service Center
3131 Democrat Road
Memphis, Tennessee 38110

California, Hawaii

If you have no legal residence or prin-
cipal place of business in any Internal
Revenue district, or if your Principal place
of business is in Puerto Rico, file Form 940
with Internal Revenue Service Cent
11601 Roosevelt Boulevard, Philadelphi
Pa, 19155,

Requirements for Deposits.—Federal
unemployment tax must be deposited with
an authorized commercial bank or a Fed-
eral Reserve bank. A Federal Tax Deposit
Form 508 must accompany each deposi

Federal unemployment tax must be co!
puted on a quarterly basis. Any amount
due must be deposited on or before the
last day of the first month following the
close of the quarter. (For those who do
hot qualify as an employer, until the sec-
ond or third quarter, deposit requirements
do not begin until the end of the second or
third quarter, respectively.)

To determine whether you must make a
deposit for any of the first three quarters
in 1973, compute the total tax by multi-
plying by .0058 that part of the first $4,200
of each employee's annual wages that was
paid during the quarter.

If the amount subject to deposit (plus
the amount subject to deposit for any prior
quarter but not deposited) is more than
$100, deposit it during the first month
following the quarter. If $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 less
amounts deposited for the year is more
than $100, you must deposit the entire
amount. If your tax for the year (less any
deposits) is $100 or less, you may either
deposit the tax or send payment with
Form 940.

If you deposited the proper amounts
in accordance with these rules, the balance
due on line 18 will not exceed $100.

How to Make Deposits.—Fill in a pre-
inscribed Federal Tax Deposit Form 508
in accordance with its instructions.

Send the Federal tax deposit form and
your tax deposit to any commercial bank
depositary or Federal Reserve bank. Make
your check or money order payable to that

yank.

The timeliness of deposits is determined
by the date received in a commercial bank
depositary or Federal Reserve bank. A de-
posit received after the due date will be
considered timely if you establish it was

mailed two or more days before the due

late.

Employer's Name, Address, and Identi-
fication Number.—Use the preaddressed
Form 940 mailed to you. If you must use
one not preaddressed, type or print your
name, trade name, address, and employer
identification 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 reasonable cause is shown for the
delay. If you file late, attach an explanation.

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

Credit for Contributions Paid into State
Funds.—Employers are entitled to a credit
against their Federal unemployment tax
for contributions paid into a certified State
unemployment compensation fund on or
before the due date of Form 940.

The term “contributions” means pay-
ments required by a State law to be made
into an unemployment fund by any person
on account of having individuals in his
employ, to the extent that such payments
are made by him without being deducted or
deductible from the remuneration of indi-
viduals in his employ.

Contributions may be credited against
the tax whether or not they are paid with
respect to “employment.” But credit may
not be taken for voluntary contributions or
for penalties or interest paid to a State.

The credit for contributions made after
the due date (or extended due date) for
filing Form 940 may not exceed 90 percent
of the amount that would have been allow-
able if the contributions were paid on or
before the due date.

Employers who have been granted an
experience rate lower than 2.7 percent by
a State for the whole or part of the year
are entitled to an “additional credit.” This
is equal to the difference between actual
contributions and the amount they would
have been required to contribute at (1) the
highest rate applied by the State, or (2)
2.7 percent, whichever is lower.

Under Section 3302(e) a special credit is
provided if an employer during any calendar
year acquires substantially all of the prop-
erty used in the trade or business (or in

Sepai arate unit of a trade or business) ‘of
‘not er person who is not an “employer”
and immediately after the acquisition the
successor employs in his trade or business
one or more individuals who immediately
prior to the acquisition were employed in
the trade or business of the predecessor.
This special credit is not allowable to any
successor employer whose predecessor
also is an “employer,” nor is it allowable
to a corporation acquiring the trade or
business of another corporation in a statu-
tory merger or consolidation. The amount
of the special credit is based on the amount
of remuneration, subject to the unemploy-
ment compensation law of a State, paid
by the predecessor to those employees who
were employed by the predecessor imme-
diately before the transfer of the trade or
business (or separate unit thereof) and
who also were employed by the successor
immediately after the transfer.

The total credit allowable under Section
3302 may not exceed 2.7 percent of taxable
wages.

SCHEDULE B—Computation of Taxable Wages (See Schedule B instructions on page 2)

I. Total remuneration (including exempt remuneration) PAID during the calendar year for services of employees... | $
Exempt Remuneration ‘mate number of
(List each type of exemption) eriarees woke Amount paid

2. Exempt remuneration (Explain each exemption shown, attaching addi-

tional sheet if necessary):

iy

first $4,200 peid to individual employees exclusive of exempt

amounts entered on line 2)... + tered
4. Total exempt remuneration... . . . - - - +++ - — GW) WW 0007
5. Total taxable wages (line 1 minus line 4), Enter this amount in Item 13 on other side. . . . - - . . «| $

SCHEDULE C—Record of Federal Tax Deposits

Serial Number [pate of Deposit ‘Amount Serial Number Tate of Deposit ‘Amount. Sarial NUMPET | Date of Deposit ‘Amount

Total taxes deposited (also enter in item 17 on other side), . . ss se

Page 4

GPO 006-999

48—10—82005-1


rorm 940

Department of the Treasury
Internal Revenue Service ,

Employer’s Annual Federal Unemployment Tax Return

| 1972

SCHEDULE A—Computation of Credit Against Federal Unemployment Tax

State reporting number Taxable payroll Experience rate period | Experi- | Contributions had | Contributions payable Additional Contributions
Name of State | as shown on employer's | (4, jTar8bie. PAYTON @) ence | rate been 2.7 at experience rate actually paid

State contribution returns
a) @ @) From— {

To—

(col. 3 2.7%)
©

(col. 3 X col. 5)
M

credit
(col. 6 minus col. 7)
@

Totals >»

WL Wa Ls

Wd

Ye Ws

10. Total tentative credit (Column 8 plus column 9) .
11. Enter 2.7% of the amount of wages shown in Item 13 below

12. Credit allowable (Item 10 or 11 whichever is smaller). Enter here and

in Item 15

EMPLOYERS—Do Not Use This Space—CONTINUE BELOW

‘State reporting
number a8 shown
+ on employer's State

Exp
From—

Taxable payroll ience rate period

Ex
(As defined in State act)

contribution returns

To

after January 31

Dates and amounts of contributions
actually paid to State

Contributions actually
aid to State before
February

To the Internal Revenue Service:

| hereby
that all contributions were paid betore February 1.

Signature of
State Officer >

Name of
State p.__..

certify that, except as noted above, the records of this office agree with the entries made by the employer in columns (2), (3), (4), (5), and (9) of Schedule A, and

[7 Name (as distinguished from trade name)

Employer's
name,
address,
identification
number and
calendar
year.

(If not
correct
please
change.)

Trade name, if any
>

‘Address and ZIP code.

Name (as distinguished from trade name)

‘Trade name, if any

>
‘Address and ZIP cede

L

-- Entries must be made both above and below this line -

Calendar Year
1972

Identification

Calendar Year

1972

No.

Identification No.

13.
14,
15.
16.

17.
18.

Gross Federal tax (3.2% of Item 13)

Less: Credit from Item 12, Schedule A .

Item 14 less Item 15 . a
Total tax deposited (From Schedule C, on other side) a

Balance Due (Item 16 less Item 17). Pay to ‘Internal Revenue Service”

Total taxable wages paid during calendar year (From Schedule B, on other side) .

19,

If no longer in business at end of year, write “FINAL” here b>

Under penalties of perjury, 1 declare that | have examined this return, including accom
and complete, and that no’ part of any payment made {0 a State unemplayment fund whic
‘employecs.

Date.

Signature...

ing schedules and
is clai

fatements, and to the best of my knowledge and belief it is true, correct,

jed as a credit in Item'15 above, was or is to be deducted from the remuncre

rion ot

Title (Owner, etc.)_.

oAR—16—82005-1 Form 940 (1972)


HOW TO PREPARE SCHEDULE A-——Computation of Credit Against Federal Unemployment Tax

Experience Rate.—If you have been
granted an ‘‘experience rate" lower than
2.7 percent by a State for the whole, or
part, of the taxable year, use columns
1 thru 9. If you have not been granted
an “experience rate,” use columns 1, 2,
3, and 9 only. If you have been granted
an “experience rate’ higher than 2.7
percent, use columns 1, 2, 3, 4, 5, and
9 only.

If a State has granted an experience
rate cn part of your payroll, that part to
which the experience rate does not apply
should be entered separately, using col-
umns, 1, 2, 3, and 9 for this purpose.

If you were granted an “experience
rate" for a part of the year only, or your
“experience rate” was changed during
the year, show in the proper columns the
period of the year to which each separate
rate applied, the payroll, rate of contri-
butions, and required contributions with
respect to each such period.

Column 1.—Enter the name of the
State or States (including Puerto Rico)
to which contributions were required to
be paid.

Column 2.—Enter your State report-
ing number as shown on your State con-
tribution return. If you had employment
in more than one State, enter the report
ing number assigned to you by each such
State. .

Column 3.—Enter the taxable payroll
on which you are required to pay contri-
butions into the unemployment fund of
the State indicated in column 1. If you
have been granted an ‘‘experience rate"
of zero, enter the amount upon which
you would have been required to make
contributions had such rate not been
granted.

Column 4.—Enter the period or pe-
riods of the year to which the ‘‘experi-
ence rate’’ or rates apply.

Column 5.—Enter the ‘experience
rate’ or rates granted to you by the
State or States for the period or periods
shown in column 4.

Column 6.—Section 3302(b) of the
Code requires a determination of the
amount of contributions an employer with
an “experience rate’’ would have been
required to pay if throughout the taxable
year he had been subject to the highest
rate applied by the State or to a rate of
2.7 percent, whichever rate is lower. For
the purpose of this return, assume that
the highest rate applied under the State
law in the taxable year was not lower than
2.7 percent and use that rate in com-
puting the amount shown in column 6,
If the highest rate applied by the State
was lower than 2.7 percent, the additional
credit computed with respect to such
State will be reduced accordingly.

HOW TO PREPARE SCHEDULE B—Computation of

Line 1.—Total remuneration (including
exempt remuneration) PAID during the
calendar year for services of em-
ployees.—Enter in line 1 of Schedule B
the total amount of remuneration for
services paid to employees during the cal-
endar year, regardless of whether such re-
muneration is taxable. Such remuneration
should include salaries, wages, commis-
sions, fees, bonuses, vacation allow-
ances, salaries and wages paid to tem-
porary or part-time employees, the value
of goods, lodging, food and clothing, and
all amounts deducted from employees’
wages as employee tax or as deductions
for other reasons. The basis upon which
the remuneration is paid is immaterial in
determining whether the remuneration
constitutes wages. Thus, it may be paid
‘on the basis of piecework, or a percent:
age of profits; and it may be paid hourly,
daily, weekly, monthly, or annually.

The medium in which the remuneration
is paid is also immaterial. It may be paid
in cash or in something other than cash,
as for example, goods, lodging, food, or
clothing. Remuneration paid in items
other than cash should be computed on
the basis of the fair value of such items
at the time of payment.

Exempt remuneration.—The terms
“wages'’ and “employment” as defined
for Federal unemployment tax purposes
do not include every payment of remu-
neration to an employee and every kind
of service which an employee may per-
form. In general, any remuneration which
is excluded from “‘wages’’ and any re-
muneration for services which are ex-
cepted from ‘‘employment,” are not
cluded in the total wages subject to the
tax. These remuneration payments may
be deducted from the total remunera-
tion paid only if they are identified in
Schedule B.

Item 10.—Enter the sum of columns
8 and 9. Also include the amount of any
special credit as explained below.

Special Credit.—if special credit is
claimed as a successor employer, attach
a statement showing (a) the name,
address, and employcr identification
number of the predecessor, (b) the meth-
od of acquisition of the predecessor's
trade or business (or a separate unit
thereof), (c) the date on which the
acquisition occurred, (d) each of the
items of information in columns 1
through 9 of Schedule A applicable to
the predecessor, (e) the number of indi-
viduals employed by the predecessor
immediately prior to the acquisition who
also were employed by the successor
employer immediately after the acquisi-
tion, (f) the total amount of remunera-
tion, subject to the unemployment com-
pensation law of a State, paid to such
employees by the predecessor during the
calendar year.

The amount of the special credit is
determined by (1) adding the amounts
determined for the predecessor (in step
(d), above) as ‘'Additional credit'’ and
as “Contributions actually paid to State”
and (2) multiplying this total by a frac-
tion of which the numerator is the
amount determined in step (f) above,
and the denominator is the amount de-
termined (in step (d), above) as ‘‘Tax-
able Payroll (as defined in State Act).”

Taxable Wages

Line 2.—Enter in line 2 such items
as (1) agricultural labor, (2) benefit pay-
ments for sickness or injury, under a
workmen’s compensation law, insurance
plan and certain employer plans, (3) do-
mestic service, (4) family employment,
(5) certain fishing activities, and (6) any
other exempt payments or services. For
more definite information with respect to
these exemptions, see Circular E, Em-
ployer's Tax Guide.

Line 3.—Enter in line 3 the approxi-
mate number of employees who received
more than $4,200 from you during the
year and the aggregate amount of the
excess above $4,200 paid to all of those
employees. For example, assume that you
had 10 employees, and that you paid each
of them $5,000 during the year. $50,000
should be included in tine 1 and $8,000
in line 3.

(For General Instructions, see back of your copy.)

SCHEDULE B—Computation of Taxable Wages (See Schedule 8 instruction above)

T. Total remuneration (including exempt remuneration) PAID during the calendar year for services of employees. . |
“Exempt Remuneration “Approximate number of _ —
(List each type of exemption) employees Involved Amount paid
2. Exempt remuneration (Explain each exemption shown, attaching addi-
tional sheet if necessary):
200 ald te, incvidual employees exclusve of exempt
amounts entered on line 2) . a
[ees
4. Total exempt remuneraticn . we ~.. QUMWUGy)WK MMW vv
3. Total taxable wages (line 1 minus line 4). Enter this amount in Item 13 on other side $

SCHEDULE C—-Record of Federal Tax Deposits

Serial Number

‘of Form 608 ‘Amount

Date of deposit

erat Number

of Form 508 Amount

Date of deposit

‘Serial Number

‘of Form 508 Amount

Date of doposit

Total taxes deposited (also enter in item 17 on other side), . - - + + se

Page 2

16—82005-1


a Employer's Annual Federal Unemployment Tax Return | 1972

Internal Revenue Service

' Schedule A—Computation of Credit Against Federal Unemployment Tax

State reporting number | Experience cate period | Exper- | Contributions ha [Contributions payable [Additional Contributions
Name of State | as shown on employer's Jasable payroll @ fence | rate been 2.7% | at experience credit actually paid
State contribution returns | (As defined in Sate acd Fi Te wis | Gan Secz Jo} | Gahts se cots) (col, 6 minus col, 7)] to'Seate
a) @) @) fo 6) aC) @ @ @)

Totals WH ZTE VM IN Ll I
10. Total tentative credit (Column 8 plus columa 9) . 2... . a
11. Enter 2.7% of the amount of wages shown in Item 13 below |. pie

12. Credit allowable (Item 10 or 11 whichever is smatler). Enter here and in Item 15. -

KEEP THIS COPY
FOR YOUR RECORDS

You must retain this copy, and a copy of each related schedule or statement for a period of 4 years after the date the tax
is due or paid, whichever is the later. These copies must be available for inspection by the Internal Revenue Service.

Calendar Year

1972

Identification No.

Calendar Year

1972

Identification No.

13. Total taxable wages paid during calendar year (From Schedule B, on other side). . . . . .

14. Gross Federal tax (3.2% of Item 13) 2. 6 we eee ee ee ee
15. Less: Credit from item 12, ScheduleA ©. 2. / 2 ee ew ee
16. Item 14 less Item 15 . . se eee ery

17. Total tax deposited (From Schedule C, on other side) . .
18. Balance Due (Item 16 less Item 17). Pay to ‘‘Internal Revenue Service"
19. If no longer in business at end of year, write “FINAL” here b>

Important.—Before filing the return be sure to enter on this copy your name, address, and identification number. — 1s—a2005-1