Do you have to file 940 if no wages were paid?
Yes, if your EIN approval letter you received in the mail from IRS listed Form 940 among the tax returns your business is required to file, you must file Form 940 even if you have no employee or paid $0 wages.
How to fill out Form 940 for 2023 if you have no employee or paid $0 wages?
- You fill out 2023 Form 940 with your business legal name and EIN on page 1 and at the top of page 2.
- Check box C on the top page 1 in the far right for no employee was paid in 2023.
- Enter your state abbreviation on Part I.
- You leave blank any line that requires a dollar amount and yours is $0.
- Check No in Part 6.
- Enter your business name and business title in Part 7.
- Print the Form 940 out. Review and sign Part 7 next to your name in the signature box.
- Make a copy of Form 940 for your business record.
- Mail your Form 940 to IRS to the address found on page 4 in the IRS instructions for Form 940 for 2023 using the address from the column “without payment” that corresponds to the row your state is located on.
- Mail the form via USPS certified mail to have a tracking number and keep the receipt with your copy Form 940.
Below and in the video, we show step by step how to complete IRS Form 940 with $0 wages paid in 2023.
Business information
Enter your business EIN on EIN line.
Name: Enter your business legal name. That is the business name you entered on the business EIN application form Line business legal name.
If you are a sole proprietor, that will be your fist and last name.
If you are a single member LLC that file Schedule C (Form 1040), you enter your business EIN and your business legal name on Form 940.
Trade name: If your business has a DBA name you filed with your state, you enter that name as Trade name.
Address: Enter your business address including street number and name, city, state, and zip code.
You can read more in the IRS instructions for 2023 Form 940 page 8.
Type of return
The type of return boxes is on the right side of the business information “Type of Return”. Read through it and check the box(es) applied to your business.
Check box c: no payments made to employees in 2023.
Form 940 Part 1
Line 1a: Enter your state abbreviation.
Line 1b: Leave it blank.
Line 2: Do you pay state unemployment tax to multiple states: Leave it blank.
Form 940 Part 2
Line 3: Total payments to all employees: Leave it blank.
Line 4: Payments exempt from FUTA: Leave it blank.
Line 5: Total payments portion made to all employees above the first $7,000 you paid each one of them: Leave it blank.
Line 6: Wages excluded from FUTA: It is the total amount you should not pay FUTA tax on. That is the total of line 4 payment exempt from FUTA and line 5 payment paid above $7,000. In your case leave it blank.
Line 7: Taxable FUTA wages: Subtract line 6 from line 3. That is the amount to pay FUTA tax on. In your case, leave it blank.
Line 8: Leave it blank.
Form 940 Part 3
Line 9: If you are not going to pay unemployment tax to your state, multiply line 7 total taxable FUTA wages by 5.4%. In your case, the amount is $0. Therefore, leave it blank.
Line 10 & Line 11: Leave them blank.
Form 940 Part 4
Line 12: Total FUTA tax: add line 8, line 9, line 10, and line 11: Yours will be $0. Therefore, leave it blank.
Line 13: FUTA tax deposited during the year and prior year Form 940 refund not taken: In your case, leave it blank unless you have prior year refund to enter.
Line 14: Balance due: It is the difference between line 12 total FUTA tax and line 13 total deposits: Yours will be $0. Therefore, leave it blank.
Line 15: If the total deposited Line 13 is more than the total tax Line 12, you have a refund: Yours will be $0. Therefore, leave it blank unless you have an amount on line 13. Then you check one box whether you want a refund or apply it toward next year Form 940.
Form 940 Page 2
Enter your business legal name that you have on page 1 at the top of page 2. Enter your business EIN number on page 2.
Form 940 Part 5
If your total FUTA tax on Line 12 is more than $500, you complete Line 16 to Line 17. If your Line 12 is $500 or less, leave Line 16 to Line 17 blank and go the next part.
Line 16a to Line 17: Leave it blank. Since you didn’t pay any wages, you didn’t have any unemployment tax liabilities.
Form 940 Part 6
You can check “No” if you prefer IRS addresses any questions, they may have with you only.
Form 940 Part 7
Add your name, your business title, and your phone number.
Leave the Paid Preparer Use Only section alone if you are filling out Form 940 for your own business.
Because you don’t owe any unemployment tax, you are not going to add payment to Form 940. Therefore, you are done completing form 940. You don’t need to fill out Form 940 V.
Print Form 940 out.
Review it, sign, and date.
If you prefer to sign electronically, you can check the alternative signature options below.
Alternative electronic signature
https://www.irs.gov/irb/2005-28_IRB#RP-2005-39
Make a copy of the signed Form 940 and keep the copy for your business records.
Put the signed Form 940 in an envelope and seal.
Look in IRS instructions for Form 940 for 2023 page 4 for the right address to use.
Where to mail Form 940 without a payment?
- Locate your state in the address column.
- Locate the address in “without a payment” column that is on the same row as your state.
- That is the address to write on the envelope.
“Without Payment” address that corresponds to the row where your state is listed is the address to mail Form 940 if you paid no wages during the year and therefore, owe $0 FUTA tax.
Mail your Form 940 via USPS certified mail with a tracking number.
Keep the receipt with your Form 940 in your business records.
What is Form 940 and when must it be filed?
Form 940 is unemployment tax return you file with IRS at the end of the calendar year to report wages paid to employees in your business, the portion of the wages that is subject to FUTA (Federal Unemployment Tax), and the amount of unemployment tax your business is required to pay for the year.
Form 940 must be filed with IRS by January 31st.
You can access the link to IRS Form 940 for 2023 and its instructions on IRS website or from our website “Federal Tax Forms and Instructions Links” (https://ninasoap.com/federal-tax-forms-and-instructions/federal-tax-forms-and-instructions-links/).
Conclusion: Do I need to file form 940 if I have no employees?
The video and the article explain step by step how to fill out Form 940 with $0 wages for 2023.
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