If you are an employer, other than a household or agricultural employer,
you may have to file Employer's Annual Federal Unemployment Tax Return (FUTA),
Form 940 or
Form 940EZ for 2000,
if either of the following situations apply:
- You paid $1,500 or more in wages during any calendar quarter in 1999 or 2000, or
- You had at least one employee work for some part of a day in any twenty or more
different weeks in 1999 or 2000.
Count all regular, temporary, and part-time employees for wages paid.
If you are a household employer you will generally file
Schedule H of Form 1040,
if you paid cash wages of $1,000 or more in any calendar quarter of 1999 or 2000
for household work in your private home. Also, file Form 940 or 940EZ if you paid
cash wages of $1,000 or more in any calendar quarter in 1999 or 2000 for household
work in a local college club or a local chapter of a college fraternity or sorority.
If you are an agricultural employer, you will have to file Form 940 or 940-EZ
for farm workers if:
- You paid cash wages of $20,000 or more in any calendar quarter in 1999 or 2000, or
- You had 10 or more farm workers during some part of a day for at least one day
during any 20 or more different weeks in 1999 or 2000. Bona fide residents of Puerto
Rico should select Topic 903.
Include cash compensation paid to aliens (also known as workers with H-2 (A) visas)
admitted on a temporary basis to the U.S. to perform farm work to see if you meet
either test. However, compensation paid to H-2 (A) visa holders is not subject to
the Federal Unemployment Tax and should be entered as Exempt Payments on line 2
of either Form 940 or 940-EZ.
The gross federal unemployment tax rate for 2000 is 6.2% and is figured on the
first $7,000 of wages you paid each employee in 2000. If you paid all of the state
unemployment tax timely on the same wages, you are allowed a state credit of up to 5.4%.
The federal tax rate after the credit is .8%.
If you do not pay the state unemployment tax timely, your credit for the
late payment(s) is limited to 90% of the amount you would have been allowed,
if paid on time.
You may be able to file Form 940-EZ, a simplified Federal unemployment tax return for 2000,
if you meet three tests:
- You made state unemployment contributions to only one state,
- You paid all your state contributions by January 31, 2000
(February 12 if you deposited all FUTA tax when due),
- All of your Federal unemployment tax wages were also taxable for your
state's unemployment tax.
The due date for filing the 2000 Form 940 or 940-EZ is January 31, 2000.
However, if you deposited all taxes when due, you have until February 12, 2000, to file.
For more information, see Publication 15,
Employer's Tax Guide, and Publication 15-A,
Employer's Supplemental Tax Guide. Refer to
Topic 759 for more information on deposit rules.
Forms and publications may be downloaded from this site
or ordered by calling 1-800-829-3676.
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