Tax Form 940 Is Now Explained in Maxmoneyzone.org Article
The different parts of Form 940 are explained and tax preparation expert Frank Ellis walks readers through the steps to completing this often tricky form.
December 12, 2016 ( datsyn.com) – Frank Ellis, a tax preparation expert and published author, now provides a comprehensive look at IRS Form 940 to help taxpayers fill it out. He outlines the steps to completing the form. The article also runs through each part of it.
First, the article explains Part 1, where the taxpayer enters their state abbreviation and, if filing for multiple states, Schedule A must be completed as well. This also applies to Part 2, which has to do with wages. This next section calculates the FUTA tax prior to adjustments. Amounts exempt from the tax are put here too, the author says. Ellis mentions and recommends QuickBooks Payroll Online 2016 for preparing/submitting the form.
In Part 3, he says that adjustments for state unemployment tax is calculated. Credit reductions are factored in here as well. An embedded video explains the form and its use for federal unemployment tax, and then a description of Part 4 follows. This includes balance due or payments not made from the year before.
If one owes more than $500 for the quarter, Part 5 states the tax owed and how QuickBooks calculates the amount due. It will also tell the user if they need to pay anything. Calculating tax is important, Ellis says, because one will have to pay penalties and interest. A free payroll trial of the software is available to prepare Form 940 and a link to this is provided.
Lastly, Parts 6 and 7 are briefly touched on. The first includes information on any person that may represent the taxpayer, and Part 7 is where the taxpayer’s signature goes. This, Ellis says, can also be done electronically by using the QuickBooks software.
Every part of Form 940 is explained in more detail in the article. To learn more about each step, visit maxmoneyzone.org/file-form-940-2016/ for direct access to the information provided.
Frank Ellis is a Traverse City Tax Preparation Planner and published author. He has written tax and finance related articles for eight years and has published over 900 articles on leading financial websites.