Form 940-EZ (1990)

Page 4

Employer's Name, Address, and Identification Number.—Use
the peel-off label mailed to you. If you don’t have a label, type or
print your name, trade name, address, and employer
identification number (EIN) on Form 940-EZ.

See Pub. 583, Taxpayers Starting a Business, for details on how
to make tax deposits, file a return, etc., if these are due before you
get your EIN.

Identifying Your Payments.—When you pay any amount you
owe to IRS (line 8) or make Federal tax deposits, write on your
check or money order: Your EIN, “Form 940-EZ,” and the tax
period to which the payment applies. This helps make sure we
credit your account properly

Penalties and Interest. —Avoid penalties and interest by making
tax deposits when due, filing a correct return, and paying all tax
when due. There are penalties for late deposits and late filing
unless you have a good reason. If you file late, attach an ex-
planation to the return.

There are also penalties for willful failure to pay tax, keep
records, make returns, and for filing false or fraudulent returns.
Credit for Contributions Paid Into State Funds. —You get a
credit for amounts you pay to a state (including Puerto Rico and
the Virgin Islands) unemployment fund by the due date of Form
pao Ee. This credit is reflected in the tax rate (.008) shown on
line 6.

“Contributions” are payments that a state requires you, as an
employer, to make to its unemployment fund for the payment of
unemployment benefits. However, contributions do not include:

@ Any payments you deducted or are deductible from your
employees’ pay.

@ Penalties, interest, or special administrative taxes which are not
included in the contribution rate the state assigned to you.

@ Voluntary contributions you paid to get a lower assigned rate.
Note: Be sure to enter your state reporting number(s) on line B(2)
at the top of the form. We need this to verify your state
contributions.

Special Credit for Successor Employers.—If you are claiming
special credit as a successor employer, you must use Form 940.
Amended Returns.—Use a new Form 940-EZ to amend a
previously filed Form 940-EZ. Write “AMENDED” at the top of the
form, enter the amounts that should have been on the original
return, and sign the amended return. Explain why you are
amending Form 940-EZ.

If you were required to file Form 940 but filed Form 940-EZ
instead, file the amended return on Form 940. See that form for
instructions.

Specific Instructions

You must complete lines A and B and Part I. If your FUTA tax
(line 6) is over $100, you must also complete Part II. Please
remember to sign the return.

Line A.—Enter the dollar amount of state unemployment
contributions. However, if your state has given you a zero percent
experience rate, so that there are no required contributions, write
“0% rate” in the space.

Part I. Taxable Wages and FUTA Tax

Line 1. Total payments.—Enter the total payments you made
to employees during the calendar year, even if they are not
taxable. Include salaries, wages, commissions, fees, bonuses,
vacation allowances, amounts paid to temporary or part-time
employees, and the value of goods, lodging, food, clothing, and
noncash fringe benefits. Also include the amount of tips reported
to you in writing by your employees. Enter the amount before
any deductions.

How the payments are made is not important to see if they
are wages. Thus, you may pay wages for piecework or as a
percentage of profits. 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 market value when paid.

Line 2. Exempt payments.—‘‘Wages”” and ‘‘employment”’ for
FUTA purposes do not include every payment and every kind of
service an employee may perform. In general, payments that are
not wages and payments for services that are not employment
are not subject to tax. You may deduct these payments from
total payments only if you explain them on line 2.

Enter such items as the following:

(1) Agricultural labor, if you didn’t meet either of the tests in
Agricultural Employers on page 2.

(2) Benefit payments for sickness or injury under a worker's
compensation law.

(3) Household service if you did not pay cash wages of
$1,000 or more in any calendar quarter in 1989 and 1990.

(4) Certain family employment.

(5) Certain fishing activities.

(6) Noncash payments for farmwork or household services in
a private home that are included on line 1. Only cash wages to
these workers are taxable.

(7) Value of certain meals and iodging.

(8) Cost of group-term life insurance.

(9) Any other exempt service or pay.

For more information, see Circular E, Employer's Tax Guide.
Line 3.—Enter the tota! amounts over $7,000 you paid each
employee. For example, if you have 10 employees to whom you
paid $8,000 each during the year, enter $80,000 on line 1 and
$10,000 on line 3. Do not include any exempt payments from
line 2 in figuring the $7,000.

Part Il.—Record of Quarterly Federal

Unemployment Tax Liability .
Complete this part only if your FUTA tax on line 6 is over $100. To
figure your FUTA tax liability, multiply by .008 that part of the first
$7,000 of each employee's annual wages you paid during the
quarter. Enter the result in the space for that quarter.

Your total liability must equal your total tax. If not, you may be
charged a failure to deposit penalty figured on your average
liability.

Record your {liability based on when you pay the wages, not on
when you deposit the tax. For example, assume that you pay
wages on March 29 and your FUTA tax liability on those wages is
$200. You deposit the $200 by April 30. You would include that
$200 in the first quarter, not the second.

Depositing FUTA Tax.—Generally, FUTA taxes are deposited
quarterly. If your liability for any of the first 3 quarters of 1990
(plus any undeposited amount of $100 or less from any earlier
quarter) is over $100, deposit it by the last day of the month after
the end of the quarter. If it is $100 or less, carry it to the next
quarter; a deposit is not required. If your liability for the 4th
quarter (plus any undeposited amount from any earlier quarter) is
over $100, deposit the entire amount by January 31, 1991. if itis
$100 or less, you can either make a deposit or pay it with your
Form 940-EZ by January 31

Note: The tota/ amount of all deposits must be shown on line 7.

If you deposited the right amounts, following these rules, the
amount you owe with Form 940-EZ will never be over $100.

Deposit FUTA tax in an authorized financial institution or the
Federal Reserve bank for your area. To avoid a possible penalty,
do not mail deposits directly te IRS. Records of your deposits will
be sent to IRS for crediting to your business accounts. See
Identifying Your Payments above.

You must use Form 8109, Federal Tax Deposit Coupon, wtien
making each tax deposit. IRS will send you a book of deposit
coupons when you apply for an EIN. Follow the instructions in the
coupon book. If you don't have coupons, see Circular E.

‘U.S.GPO:1990-0-265:104


a Employer’s Annual Federal , |_OMB No. 1545-1110 _
fom 940 EZ Unemployment (FUTA) Tax Return 4990

Department of the Treasury
Internal Revenue Service

7

T Name (as distinguished from trade name) Calendar year FF

Ifi t, FD

incorrect,

‘ake sre » Trade name, if any FP
necessary i
changes. ‘Address and ZIP code Employer identification number T

L =|

Follow the chart under “Who Can Use Form 940-EZ” on page 2. If you cannot use Form 940-EZ, you must use Form 940 instead.

A Enter the amount of contributions paid to your state unemployment fund. (See instructions for line Aon page 4.). . > $

B (1) Enter the name of the state where you have to pay contributions eee

(2) Enter your state reporting number(s) as shown on state unemployment tax return. >

if you will not have to file returns in the future, write “Final” here (see Who Must File a Return on page 2) and sign the return. >

Taxable Wages and FUTA Tax

1 Total payments (including payments shown on lines 2 and 3) during the calendar year for services of employees. | 1
Amount paid
2 Exempt payments, (Explain all exempt payments, attaching additional sheets if
necessary) > | Wy
| | .
2
3. Payments for services of mare than $7,000. Enter only amounts over the first $7,000 | ]/
paid to each employee. Do not include any exempt payments fromline2 . . . 13 Hh Mh
4 Total exempt payments (add lines 2 and 3) . Soe Foe oo 4
5 Total taxable wages (subtract line 4 fromlinel) . 6 6. LS
6 FUTA tax. Multiply the wages on line 5 by .008 and enter here. (If the result is over $100, also complete Part l.). . |_6
7 Total FUTA tax deposited for the year, including any overpayment applied from a prior year (from your records) . . |_7
8 Amount you owe (subtract line 7 from line 6). This should be $100 orless.PaytoIRS . 2. 2 1 1 1 8

9 Overpayment (subtract line 6 from line 7). Check ifit is to be: [] Applied to next return, or L] Refunded. . » | 9

[Part 11} Record of Quarterly Federal Unemployment Tax Liability
(Do not include state liability.) Complete only if line 6 is over $100.

Quarter First (Jan. 1-Mar.31) | Second (Apr. 1 - June 30) | Third (July 1 ~ Sept. 30) Fourth (Oct. 1 ~ Dec. 31) Total for Year

Liability for quarter |

Under penalties of perjury, I declare that | have examined this return, including accompanying schedules and statements, and, to the best of my knowledge and belief, itis true, correct, and
complete, 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.

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

For Paperwork Reduction Act Notice, see page 2. Form 940-EZ (1990)


Form 940-£Z (1990)

Page 2

Paperwork Reduction Act Notice.—We ask for the information
on this form to carry out the tax laws of the United States. You
are required to give us this information. We need it to ensure
that you are complying with these laws and to allow us to figure
and collect the correct tax.

The time needed to complete and file this form will vary
depending on individual circumstances. The estimated average
time is:

Learning about the
law or the form

Preparing and sending
Recordkeeping the form to IRS

5 hrs., 20 min. 7 min. 26 min.

If you have comments concerning the accuracy of these time
estimates or suggestions for making this form more simple, we
would be happy to hear from you. You can write to both the
Internal Revenue Service, Washington, DC 20224, Attention: IRS
Reports Clearance Officer, T:FP; and the Office of Management
and Budget, Paperwork Reduction Project (1545-1110),
Washington, DC 20503. DO NOT send the form to either of these
offices. Instead, see the instructions below for where to file it.

Who Can Use Form 940-EZ.—You can use Form 940-£Z if:
(1) you paid unemployment taxes (“contributions”) to only one
state; (2) you paid these taxes by the due date of Form 940-EZ;
and (3) all wages that were taxable for FUTA tax were also
taxable for your state's unemployment tax. Otherwise, use Form
940. For example, if you paid wages to corporate officers (these
wages are taxable for FUTA tax) in a state that exempts these
wages from its unemployment taxes, you cannot use Form
940-EZ. The chart below will lead you to the right form to use.

Did you pay unemployment
contributions to only one
state?

Yes

'

Did you pay all state unemployment
contributions by the due date of No
Form 940-EZ?

Yes

t

Were all wages that were taxable for
FUTA tax also taxable for your
state's unemployment tax?

Yes
t v

You cannot use
You can use Form 940-EZ. ort z:

Form 940-EZ; use
Form 940 instead.

No———_>,

‘No———_>}

Note: Do not file Form 940-EZ if you have already filed
Form 940 for 1990.

General Instructions

Purpose of Form.—The Federal Unemployment Tax Act
(FUTA), together with state unemployment systems, provides
for payments of unemployment compensation to workers who
have lost their jobs. Most employers pay both a Federal and
state unemployment tax. Use this form for your annual FUTA tax
report. Only the employer pays this tax.

Who Must File a Return

General Rule (household and agricultural employers see
below).—File a FUTA tax return if either of the following applies:
(1) You paid wages of $1,500 or more in any calendar quarter
in 1989 or 1990; or
(2) You had at least one employee for some part of a day in any
20 different weeks in 1989 or 1990.

Count all regular, temporary, and part-time employees. A
partnership should not count its partners. If a business changes
hands during the year, each employer meeting test (1) or (2)
above must file. Neither should report wages paid by the other.
Household Employers.—File a FUTA tax return ONLY if you
paid cash wages of $1,000 or more in any calendar quarter in
1989 or 1990 for household work in a private home, local
college club, of a local chapter of a college fraternity or sorority.
Note: See Pub. 926, Employment Taxes for Household
Employers, for more information.

Agricultural Employers.—File a FUTA tax return if either of the
following applies:

(1) You paid cash wages of $20,000 or more to farmworkers
during any calendar quarter in 1989 or 1990; or

(2) You employed 10 or more farmworkers during some part
of a day (whether or not at the same time) for at least one day
during any 20 different weeks in 1989 or 1990.

Count aliens admitted to the United States temporarily to do
farmwork to see if you met either of the above tests. However,
wages paid to these aliens are not subject to FUTA tax before
1993.

Nonprofit Organizations.—Religious, educational, charitable,
etc., organizations described in section 501(c)(3) of the Internal
Revenue Code and exempt from tax under section 501(a) are
not subject to FUTA tax and are not required to file.

Completing Form 940-EZ.—If your FUTA tax for 1990 (line 6)
is $100 or less, complete only Part | of the form. If your FUTA
tax is over $100, complete Parts | and Il. See the instructions for
Part II for information on FUTA tax deposits.

Filing Hint.—You can help avoid IRS contacts for missing
information and delays in processing your return. Do this by
making sure you fill in all the lines that apply to you. And, if you
are not using a label with Form 940-EZ, be sure you fill in the
name lines exactly as they were shown on your Form SS-4,
Application for Employer Identification Number.

If You Are Not Liable for FUTA Tax.—If you receive Form
940-EZ and are not liable for FUTA tax for 1990, write ‘‘Not
Liable" across the front and return it to IRS. If you will not have to
file returns in the future, write ‘‘Final’’ on the line above Part | and
sign the return.

Due Date.—Form 940-EZ for 1990 is due by January 31, 1991.
However, if you deposited on time all tax due, you have 10 more
days to file.

Where To File.—
If your principal Fite with the
business, office or Internal Revenue
agency is located in: Service Cent

Florida, Georgia, South Carolina Atlanta, GA 39901

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

New York (ail other counties), Connecticut,
Maine, Massachusetts, New Hampshire,
Rhode Isiand, Vermont

Mlinois, lowa, Minnesota, Missouri, Wisconsin
Delaware, District of Columbia,

Maryland, Pennsylvania, Puerto Rico,
Virginia, Virgin Islands

indiana, Kentucky, Michigan, Ohio,

West Virginia

Kansas, New Mexico, Oklahoma,

Texas

‘Alaska, Arizona, California (counties of Alpine,
‘Amador, Butte, Calaveras, Colusa, Contra
Costa, Del Norte, El Dorado, Glenn,
Humboldt, Lake, Lassen, Marin, Mendocino,
Modoc, Napa, Nevada, Placer, Plumas,
Sacramento, San Joaquin, Shasta, Sierra,
Siskiyou, Soiano, Sonoma, Sutter, Tehama,
Trinity, Yolo, and Yuba), Colorado, Idaho,
Montana, Nebraska, Nevada, North Dakota,
Oregon, South Dakota, Utah, Washington,
Wyoming

California (all other counties), Hawaii

Holtsville, NY 00501

Andover, MA 05501

Kansas City, MO_64999

Philadelphia, PA 19255

Cincinnati, OH 45999

Austin, TX 73301

Ogden, UT 84201

Fresno, CA 93888

Alabama, Arkansas, Louisiana, Mississippi,
North Carolina, Tennessee

If you have no legal residence or principal place of business in any IRS district, file
with the Internal Revenue Service Center, Philadelphia, PA 19255.

Memphis, TN 37501

(Instructions continued on page 4.)


. Employer’s Annual Federal |_OMB No. 1545-1110 _
Form 940 EZ Unemployment (FUTA) Tax Return 1990

Department of the Treasury
Internal Revenue Service

T Name (as distinguished from trade name) [E (Ml [P LO VW [= IR 9 S
If incorrect,

Inake sey > Trade name, if any

ray COPY
changes. Address and ZIP code Employer identification number

L a

Follow the chart under “Who Can Use Form 940-EZ” on page 2. If you cannot use Form 940-EZ, you must use Form 940 instead.

A Enter the amount of contributions paid to your state unemployment fund. (See instructions for line A on page 4.) .

B (1) Enter the name of the state where you have topaycontributions - 2... . we

(2) Enter your state reporting number(s) as shown on state unemployment tax return. >

Ifyou will not have to file returns in the future, write “Final” here (see Who Must File a Return on page 2) and sign the return. >

Taxable Wages and FUTA Tax

1 Total payments (including payments shown on lines 2 and 3) during the calendar year for services of employees. . | 1
Amount paid

2 Exempt payments. (Explain all exempt payments, attaching additional sheets if
necessary.) >

2

3 Payments for services of more than $7,000. Enter only amounts over the first $7,000
paid to each employee. Do not include any exempt payments fromline2 . . . . .L3

4 Total exempt payments (add lines2and3). . . Co 4
5 Total taxable wages (subtract line4fromlinel) . 2 2... ee LS
6 FUTA tax. Multiply the wages on line 5 by .008 and enter here. (If the result is over $100, also complete Part ll.). . |_6
7 Total FUTA tax deposited for the year, including any overpayment applied from a prior year (from your records) . . |_Z.
8 Amount you owe (subtract line 7 from line 6). This should be $100 orless.PaytoIRS . . . . . . . . > L8
9 Overpayment (subtract line 6 from line 7). Check if itis tobe: C1] Applied to next return, or CL] Refunded. . » | 9

Record of Quarterly Federal Unemployment Tax Liability
(Do not include state liability.) Complete only if line 6 is over $100.

Quarter First (Jan. 1-Mar.31)_| Second (Apr. 1-June 30) | Third (July 1 - Sept. 30) Fourth (Oct. 1 - Dec. 31) Total for Year

Liability for quarter

Under penalties of perjury, | declare that I have examined this return, including accompanying schedules and statements, and, to the best of my knowledge and belief, itis true, correct, and
complete, 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.

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

Note: You must keep this copy and a copy of each related schedule or statement for 4 years after the date the tax is due or Form 940-EZ (1990)
paid, whichever is later. These copies must be available for inspection by the IRS. See Circular E and Pub. 937,
Business Reporting, for more information. Household employers should see Pub. 926.