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E-File Form 940-PR Now!

Complete Form 940-PR and report your annual Federal Unemployment Taxes
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What is Federal Tax Form 940-PR?

Employer's Annual Federal Unemployment (FUTA) Tax Return

Form 940-PR, Puerto Rican Employer’s Annual Federal Unemployment (FUTA) Tax Return, is used to provide funds for paying unemployment compensation to workers who have lost their jobs. Only employers pay FUTA tax since FUTA tax cannot be deducted from their employees’ wages. The FUTA tax only applies to the first $7,000 employers pay to each worker during the calendar tax year after subtracting any payments exempt from FUTA.

Form 940-PR E-Filing Deadline

The due date for filing Form 940-PR for the 2017 tax year is January 31, 2018

940 Due Date

January 31, 2018

Note: If you deposited all your FUTA tax when it was due, you may File Form 940 by February 12, 2018.

Who is required to pay FUTA tax?

  • Employers must pay for their employees.
  • Employers are required to pay under the following conditions:
    • If they paid $1,500 or more in employee wages during the calendar tax year or
    • They had one employee work for some hours during the day for at least 20 or more weeks during the current or previous tax year.
  • For Household Employees
    • If you paid cash wages of $1,000 or more in any calendar quarter during the current or previous tax year.
  • For Agricultural Employees
    • If you paid $20,000 or more in wages to farmworkers in any calendar quarter during the current or previous tax year or
    • If you had 10 or more farmworkers work for some hours during the day for at least 20 or more weeks during the current or previous tax period.
  • Who is exempt from paying FUTA tax?
    • Indian Tribal Governments
    • Tax Exempt Organizations
    • Employers of State or Local Governments

Information Required to File Form 940-PR Online

  • Business name and EIN (Employer Identification Number)
  • Total payments to all employees
  • Adjustments for state exclusions (if applicable)
  • FUTA tax and balance due or overpayment
  • FUTA liabilities per quarter
  • Futa liability deposits
IRS Form 941 2017

Steps to E-File Form 940-PR

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  • Create or Login to your TaxBandits account
  • Select “Create New 940-PR Form”
  • Enter Employer Details
  • Choose Tax Year
  • Complete Form 940-PR through the TaxBandits Interview-style Process
  • Enter the Online Signature PIN or Complete Form 8453-EMP
  • Review, Pay, and Transmit Form 940-PR directly to the IRS

What is a Credit Reduction State?

A credit reduction state is one that has not repaid money it borrowed from the federal government to pay unemployment benefits.

Any credit against federal unemployment tax will be reduced based on the credit reduction rate for that credit reduction state. Use Schedule A (Form 940-PR) to calculate the credit reduction.

Failure to File Penalties for Filing Form 940-PR

Failing to file Form 940 by the deadline will result in a 5% penalty of the tax due. This amount will accrue on a monthly basis until the amount owed is paid in full. The IRS will also penalize you for making a late payment or for not paying the full amount owed. You will be charged a total of 2-15% of the unpaid tax depending on how many [days] late your payment is.

Form 940 Resources

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