Form 940 (1978)

Page 4

(Continued from page 2)

percent or higher, use columns 1, 2, 3,
4, 5, and 9 only.

Ifa State has granted you an experience
rate on part of your payroll, enter sepa-
rately in columns 1, 2, 3, and 9, that part
to which the experience rate does not
apply. .

If you were granted an experience rate
for only part of the year or your experience
rate was changed during the year, show
in the appropriate columns the period to
which each separate rate applied, your
payroll, rate of contributions, 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) to which you were
required to pay contributions.

Column 2.—Enter your State reporting
number as shown on your State contribu-
tion return. If you had a place of employ-
ment in more than one State, enter the
feporting number assigned to you by each

tate.

Column 3.—Enter the taxable payroll on
which you must pay contributions to the
unemployment fund of the States shown in
column 1. If you have been granted an ex-
perience rate of zero, enter the amount on
which you would have had to make contri-
butions if that rate had not been granted.

Column 4.—Enter the period(s) of the
year to which the experience rate(s) ap-
plies.

Column 5.—Enter the experience
rate(s) the State(s) granted you for the pe-
riod(s) shown in column 4.

Column 6.—Multiply the payroll in col-
umn 3 by 2.7 percent and enter the result
in column 6.

Column 7.—Multiply the payroll in col-
umn 3 by the “experience rate’’ in_col-
umn 5, and enter the result in column 7,

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

Column 9.—Enter in column 9 the
amount of contributions actually paid into
the State fund.

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

Line 19.—Show the FUTA wages (if
any) subject to the unemployment com-
pensation laws of Rhode Island. (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, show
“none” on line 19.

Special Credit—If you are claiming
special credit as a successor employer, at-

tach a statement showing (a) the name,
address, and employer identification num-
ber of your predecessor, (b) how you ac-
quired your predecessor's trade or busi-
ness (or a separate unit of it), (c) the date
you acquired it, (d) each item in columns
1 through 9 that applies to your predeces-
sor, (e) the number of individuals your
predecessor employed immediately before
the acquisition, whom you also employed
immediately after the acquisition, (f) the
total remuneration subject to State unem-
ployment compensation your predecessor
paid to the employees in (e) above during
the calendar year.

The amount of the special credit is de-
termined by (1) adding the ‘Additional
Credit’ and “Contributions actually paid
to the State” determined for your prede-
cessor in step (d) above, and (2) multi-
plying this total by a fraction of which the
numerator is the amount determined in
step (f) above, and the denominator is the
“Taxable Payroll (as defined in State Act)"”
paid to all individuals in the employ of your
predecessor prior to your acquisition dur-
ing the calendar year,

Computation of
Taxable FUTA Wages

Line 11—Total remuneration (includin,
exempt remuneration) paid during the cal-
endar year for services of employees.—
Show the total remuneration for services
you paid employees during the calendar
year, even if it is not taxable. Include sala-
ries, wages, commissions, fees, bonuses,
vacation allowances, amounts paid to tem-
porary or part-time employees, and the
value of goods, lodging, food, and cloth-
ing. Show the amount before any deduc-
‘ions.

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

Line 12, column (b)—Exempt remu-
neration.—'Wages” and ‘“‘employment”’
as defined for FUTA purposes do not in-
clude every payment of remuneration and
every kind of service an employee may
perform. In general, remuneration ex-
cluded from wages and remuneration for
services excepted from employment are
not included in wages subject to tax. You
may deduct these payments from total re-
muneration paid only if you identify them
on line 12.

Show and identify on line 12 such items
as (1) agricultural labor if you paid cash
wages of less than $20,000 for agricul-

‘#e US, GOVERNMENT PRINTING OFFICE : 1978~O-263-038

tural labor for each calendar quarter in
1978, and did not employ 10 or more agri-
cultural workers during some portion of a
day during any 20 different weeks in 1978;
(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; (4) family em-
ployment; (5) certain fishing activities;
and (6) any other exempt payments or
services. For more detailed information,
see Circular E, Employer's Tax Guide.

Line 13, column (b).—Show the total
amount of remuneration you paid each em-
ployee in excess of $6,000. For example,
you have 10 employees whom you paid
$8,000 each during the year. Show
$80,000 on line 11 and $20,000 on line
13, column (b). The $6,000 wage limita-
tion is for FUTA purposes only. Do not use
the State wage limitation for this entry.

Computation of New
Jobs Credit Wages

Column (a).—If you are eligible for the
new jobs credit, complete column (a).

In addition to amounts shown in line
12, column (b), include in line 12, col-
umn (a) the total amounts paid to an em-
ployee if:

(1) services performed by the em-
ployee during more than one-half
of any pay period during the year
are for agricultural labor; or

(2) more than one-half of the amount
paid to the employee during the
year is for railroad labor; or

(3) more than one-half of the amount
paid to the employee during the
year is not for services performed
in the United States in the trade
or business of the employer.

You need not identify these items in line

12; only show the totals in line 12, col-
umn (a).

Line 13, column (a).—Show the total
amount of remuneration you paid each
employee in excess of $4,200. The $4,200
limitation is for the new jobs credit com-
putation only. The $6,000 wage limitation
in column (b) is for FUTA purposes only.
Do not use the State wage limitation for
either entry.

Lines 15a and 15b.—To determine if
you are eligible to claim the new jobs
credit, enter the amounts from line 15a
on line 6 of Form 5884, New Jobs Credit,
and from line 15b on line 1 of Form 5884,
and complete that form. (If your employ-
ees perform agricultural or railroad serv-
ices, see General Instruction D, Form
5884.)

263-038-2


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

Internal Revenue Service

1978

Name (as distinguished from trade name) Calendar Year
If incorrect, 1978
make any
necessary Trade name, if any Employer identification number
change

Address and ZIP code

FF
FD
FP

[TI

State reporting number
‘Name of State] _as shown on employer's
State Contrbgton returns

Taxable payroll
(as defined in State act)

3

Experience rate period Experi- | Contributions had
4 rate been 2.7'

|—___—; te
From Te ra (ol. 3 z 2.7%)

‘Additional Contributions

actually paid

credit
(col. 6minuscol.7)] to State
8 E}

Totals > AU

10 Total tentative credit (column 8 plus column 9—see instructions on page 4) . .
11 Total remuneration (including exempt remuneration) paid during the calendar year for service:

Ss of employees

Exempt Remuneration (See Instructions on Page 4)
12 Exempt remuneration. (Explain each exemption shown, attaching additional
sheet if necessary) P-

(a) New jobs
credit wages

13 Remuneratio excess of the first $4,200 in column (a), and the first
$6,000 in column (b), paid to individual employees exclusive of exempt
amounts entered on line 12. Do not use State wage limitation .

14 Total exempt remuneration (line 12 plus line 13) .

(b) Amount
paid

15 a New jobs credit total wages (subtract line 12, column (a) from line iD.
b New jobs credit wages (subtract line 14, column (a) from line 11) .
¢ Total taxable FUTA wages (subtract line 14, column (b) from line 11) .
16 Gross Federal tax (multiply line 15¢ by .034) .
17 Maximum credit (multiply line 15¢ by .027) .
18 Line 10 or line 17 whichever is smaller .
19 Amount, if any, of wages on line 15c attributable to Rhode Island ‘.

20 Credit allowable (subtract line 19 from line 18) .
21 _Net Federal tax (subtract line 20 from line 16) _-

x 003.

Record of Federal Tax Deposits for | Unemployment Tax (Form 508)

Quarter Liability by period Date of deposit Amount

of deposit

“7

First

Second

Third

Fourth

22 Total Federal tax deposited .

23 Balance due (subtract line 22 from ‘line 21—this should not exceed $100). Pay to Internal Revenue

ZA

| os

Service >
24 Overpayment (subtract line 21 from line 22) >
25 If no longer in business at end of year, write >

Under penalties of perjury, | declare that { have examined this return, including accompanying schedules and statements, and to the best of my Tnowiedge ‘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 remuneration of employees.

Date > Signature Title (Owner, etc.) D>

263-038-2

Form 940 1978)


Form 940 (1978)

Page 2

Effective January 1, 1978—

(1) Wage base increased to $6,000;

(2) Coverage extended to certain agricultural
and domestic service employees; and

(3) U.S. Virgin Islands employers are subject
to FUTA.

General Instructions

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

Household employers, see Publication
503, Child Care and Disabled Dependent
care. Publication 503 includes an exam-
ple and a filled in copy of Form 940 for a
household employer.

Purpose of Form 940.—Use it for the
annual reporting of tax under FUTA, which
is paid only by the employer. The tax rate
is 3.4 percent on the first $6,000 of wages
paid to each employee during 1978.

Who Must File.—In general, every em-
ployer who during 1978 or 1977 paid
wages of $1,500 in any calendar quarter
or 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 a change of ownership or other
transfer of the business occurs during the
year, each employer who meets the $1,500
a quarter or one or more employees in 20
weeks tests must file, but neither should
report wages paid by the other. Organiza-
tions described in section 501(c)(3) are
not required to file.

Beginning in 1978, employers who (1)
paid cash wages of $20,000 or more to
agricultural workers during any calendar
quarter beginning on or after January 1,
1978; or (2) employed 10 or more agri-
cultural workers during some portion of a
day (whether or not at the same time) for
at least one day during any 20 different
weeks beginning on or after January 1,
1978. (Aliens admitted to the U.S. on a
temporary basis to perform agricultural
labor are excluded until January 1, 1980.);
or (3) paid cash wages of $1,000 or more
in any calendar quarter beginning on or
after January 1, 1978, for domestic serv-
ice in a private home, local college club,
or a local chapter of a college fraternity or
sorority, will be required to file Form 940.

If you receive a form and are not liable
for Federal unemployment tax for 1978,
write “Not Liable” across the front and
return it to the IRS. If you are no longer
in_business at the end of the year, write
“Final” on line 25.

If you sold or transferred the business
during the year, attach a statement show-
ing the name, address, and employer iden-
tification number (if known) of the new
owner.

263-038-1

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

Due Date.—Form 940 for 1978 is due
by January 31, 1979. If you made timely
deposits in full payment of the tax due,
you have until February 10, 1979, to file.

Where to File.—

If your principal busi-
ness, office, or agency
is din

Vv

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

New York (all other counties),
Connecticut, Maine,
Massachuseits, New
Hampshire, Rhode Island,
Vermont

File with the Internal
Revenue Service
Center at

Holtsville, NY 00501

‘Andover, MA 05501

District of Columbia, Delaware,
Maryland, Pennsylvania

Alabama, Florida, Georgia,
Mississippi, South Carolina

Michigan, Ohio

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

‘Arizona. Colorado,
Idaho, ‘Mi Montana,
Nebraska, Nevada, North
Dakota, Oregon, South Dakota,
Utah, Washington, Wyoming

Illinois, towa,
Missouri, Wisconsin

Philadelphia, PA 19255

Atlanta, GA 31101
Cincinnati, OH 45999
Austin, TX 73301

Ogden, UT 84201

Kansas City, MO 64999
Fresno, CA 93888

California, Hawaii

Memphis, TN 37501

If you have no legal residence or principal place
of business in any Internal Revenue Service dis-
trict, or if your principal place of business is in
Puerto Rico or the U.S. Virgin Islands, file Form
940 with the Internal Revenue Service Center,
Philadelphia, PA 19255.

Deposit Requirements.—Deposit Fed-
eral unemployment tax in an authorized
financial institution or a Federal Reserve
bank according to the instructions on the
reverse of a preinscribed Federal Tax De-
posit Form 508 which must atcompany
each deposit.

Figure 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 de-
posit for any of the first three quarters in
1979, compute the total tax by multiply-
ing by .007 that part of the first $6,000
of each employee’s annual wages you paid
during the quarter.

If the amount subject to deposit (plus
the undeposited amount for any prior
quarter) is more than $100, deposit it
during the first month following the quar-
ter. 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 less
amounts deposited for the year is more
than $100, deposit the entire amount by
January 31. If the tax for the year less
any deposits is $100 or less, either de-
posit it or pay it with Form 940 by Janu-
ary 31.

If you deposited the proper amounts
following these rules, the balance due will
not exceed $100.

How to Make Deposits.—Follow the in-
structions on the reverse of the prein-
scribed Federal Tax Deposit Form 508.

Employer's Name, Address, and Iden-
tification Number.—Use the preaddressed
Form 940 mailed to you. If you must use
a nonpreaddressed form, type or print
your name, trade name, address, and em-
ployer identification number on it.

Penalties and Interest.—Avoid penal-
ties 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 fail-
ure to pay tax, keep records and make re-
turns, and for filing false or fraudulent
returns. Taxpayers who willfully claim
credit for deposits not made are subject to
fines and other criminal penalties.

Credit for Contributions Paid into State
Funds.—You can claim credit for contri-
butions you pay into a certified State un-
employment compensation fund by the
due date of Form 940.

“Contributions mean payments re-
quired by State law to be made into an
unemployment fund by any person on ac-
count of having individuals in his or her
employ, to the extent that such payments
are made without being deducted or de-
ductible from the employee’s remunera-
tion.

You may credit contributions against
the tax whether or not made with respect
to ‘‘employment.”’ You may not take credit
for voluntary contributions or for penalties
or interest payments to a State.

Credit for contributions you make after
the due date (or extended due date) for
filing Form 940 may not exceed 90 per-
cent of the amount that would have been
allowable had you paid the contributions
by 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,"’
which 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.

The total credit allowable may not ex-
ceed 2.7 percent of taxable wages.

Computation of
Credit Against Federal
Unemployment Tax

Experience Rate.—If a State has
granted you an experience rate lower than
2.7 percent for all or part of the taxable
year, use columns 1 through 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 of 2.7

(Continued on page 4)


om 940

Department of the Treasury
Internal Revenue Service

Employer’s Annual Federal
Unemployment Tax Return

| 1978

Calendar Year
1978

Employer identification number

YOUR
COPY

State reporting number Experience rate period Experi. | Contributions had | Contributions pay-
Name of State] as shown on employer's | (as dd act) ence | rate been 27%. | able at experience
state contribution returns rate | (col. 3x 2.7%) | rate (col. 3 X col. 5)

1 2 From— To— 5 6 7

‘Additional

Contributions

cred

(col. 6 minuscol. 7)
8

actually paid
State

Totals > MM NL

WM,

10 Total tentative credit (column 8 plus column 9—see instructions on page 4) . .
11 Total remuneration (including exempt remuneration) paid during the calendar year for services of employees

Exempt Remuneration (See Instructions on Page 4)

12 Exempt remuneration. (Explain each exemption shown, attaching additional
sheet if necessary) D-

(2) New jobs
credit wages

(b) Amount
paid

13 Remuneration
$6,000 in column (b), paid to individual employees exclusive of exempt
amounts entered on line 12, Do not use State wage limitation .

14 Total exempt remuneration (line 12 plus line 13).

15 a New jobs credit total wages (subtract line 12, column (a) from line iD.
b New jobs credit wages (subtract line 14, column (a) from line 11) .
¢ Total taxable FUTA wages (subtract line 14, column (b) from line 11).
16 Gross Federal tax (multiply line 15c¢ by .034) .
17 Maximum credit (multiply line 15¢ by .027) .
18 Line 10 or line 17 whichever is smaller .
19 Amount, if any, of wages on line 15c attributable to Rhode Island $.

20 Credit allowable (subtract line 19 from line 18) .
21 Net Federal tax (subtract line 20 from line 16) .

.. X 003.

||

Record of Federal Tax Deposits for | Unemployment Tax (Form 508)
Date of deposit Amount of deposit

Quarter Liability by period

ee

First

Second

Third

Fourth

22 Total Federal tax deposited :
23 Balance due (subtract line 22 from line 21—this should not exceed $100). Pay to Internal Revenue

Zi

| a

Service > —
24 Overpayment (subtract line 21 from line 22) . . _>
25 If no longer in business at end of year, write “Final” here . >

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.

263-038-2