Who is not required to file

An employer that does not hire and maintain a regular staff and has a trivial or irregular sum-total payroll is absolved from the liability to file Form 940 and pay taxes therein. Likewise, organizations referenced in section 501 (c)(3) as tax-exempt and employees of a state of a political subdivision offering services are not liable to pay FUTA tax either. Moreover, IRS also spares FUTA tax to services rendered by employees of a federally recognized Indian tribal government employer on the condition that the tribe conforms to the applicable state unemployment law.

Tax Estimator 2014

When & how should it be filed?

Form 940 (FUTA) is filed annually, normally due by January 31st. A payment of full deposit of all FUTA withholdings due can be made earlier though. Business owners can file Form 940 either on paper or electronically.

Penalties & interest
Illinois Tax Extension

In order to steer clear of unnecessary penalties and interests, businesses must make tax deposits within due dates, file correct returns and disburse the accurately calculated amount of tax to the IRS. The law imposes penalties for delayed deposits and filing unless businesses disclose realistic reasons that caused the delay. Additional penalties are charged for the following offenses:

i. failure to pay tax deliberately or on purpose

ii. failure to keep records and/or make returns

iii. filing fraudulent returns

2014 State Tax Refund