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.
How to fill out Form 940 for 2022 if you have no employee or paid $0 wages?
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.
Trade name: If your business has a DBA name you filed with your state, you entered that name as Trade name.
Address: Enter your business address including street number and name, city, state, and zip code.
Type of return
The type of return boxes is on the right side of the business information. Read through it and check the boxes applied to your business.
Check the box c: no payments made to employees in 2022.
Form 940 Part 1
Line 1a: Enter your state abbreviation.
Line 1b: Leave it blank.
Line 2: 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: Leave it blank.
Line 6: it is the total amount you should not paid FUTA tax on. That is the total of line 4 payment exempt from FUTA and line 5 payment paid in excess of $7,000. In your case leave it blank.
Line 7: 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, leave it blank.
Line 10 & Line 11: Leave it 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 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 and 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 record.
Put the signed Form 940 in an envelope and seal.
Look in IRS instructions for Form 940 for 2022 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 have paid no wages during the year and therefore owe $0 FUTA tax.
Mail your Form 940 via USPS with a tracking number.
Keep the receipt with your Form 940 in your business record.
Form 940 due date
Form 940 is due by January 31st.
You can find the link to IRS Instructions for Form 940 for 2022 and 2022 Form 940 here or on IRS.gov.
Conclusion: Do I need to file Form 940 if I have no employee?
The video and the article explain step by step how to fill out Form 940 with $0 wages for 2022.
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