Stress-Free 940 (sp) Filing.
Confidence from Start to Finish.
With TaxBandits, filing your Form 940 (sp) is simple, accurate, and fully supported in Spanish—so you get a stress-free experience.
Clear Spanish Guidance
Easily follow step-by-step instructions in Spanish, along with live support whenever you need assistance, ensuring a smooth filing experience every time.
Accuracy You Can Rely On
Your Form 940 (sp) is validated against IRS business rules, allowing you to find issues early and submit a fully compliant return with confidence.
Free Retransmission
Submit your return, make your FUTA payment, and receive IRS updates—all in one place. If the IRS rejects your form, simply fix and retransmit for free.
Free e-filing of Corrections
If something needs to be corrected after filing, you can submit your corrections for free, helping you stay compliant without extra fees.
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Form 940 (sp) — The Updated Filing Option for Employers in Puerto Rico
Form 940-PR, which was previously used for filing, can no longer be used for tax years beginning after 2023.
Instead, all employers, including employers in Puerto Rico and the U.S. Virgin Islands, have the option to file Form 940 (sp).
Why Puerto Rico Employers Choose TaxBandits for Form 940 (sp)?
Discover why employers in Puerto Rico choose TaxBandits for accurate filing.
From Data Entry to Compliance—Everything Covered
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Bulk Data Import, Eliminate Manual Entry
Import employer and FUTA wage details using our Excel template. Ideal for managing filings for multiple businesses at once.
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Schedule A (sp) for Multi-State Employers
If you operate in several states, simply enter your Schedule A (sp) information or reuse what you filed previously—included at no extra cost.
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Built-in Signature Options
Sign your Form 940 (sp) using your 94x Online Signature PIN or Form 8453-EMP. Complete the e-signature process quickly and safely.
Built to Keep You Fully Compliant with FUTA Rules
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Flexible FUTA Tax Payments
Pay your federal unemployment tax using EFW, EFTPS, debit/credit card, or check/money order—whichever fits your process best.
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Instant IRS Filing Status Updates
Track your return from submission to acceptance. We notify you the moment the IRS updates your filing status.
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Access Filed Returns Anytime
Your Form 940 (sp) filings are securely stored for up to 10 years, making audits, reviews, and year-end reconciliation effortless.
Stay compliant with filing made exclusively for Puerto Rico employers
A Premium Filing Experience for Tax Professionals in Puerto Rico
Ideal for CPAs, payroll providers, HCM platforms, and reporting agents handling multiple Form 940 (sp) filings.
Fast, Scalable Bulk Filing
Import hundreds of clients’ business and FUTA tax information with Excel or API, run bulk validation checks, and complete filing quickly.
Branded Client Portal
Give your clients a secure portal in Spanish where they can review returns, e-sign forms, and manage communication — all with your firm’s branding.
Professional Communication Tools
Customize email sender details, attach branded cover letters, and add notes before sending returns to clients.
Team Access Made Easy
Assign roles, manage permissions, and allow staff members with PTINs to prepare and submit filings.
Streamlined E-sign process
Request electronic signatures from multiple clients at once through the client portal or a secure one-time link.
Flexible payment options
Pay using BanditCash, prepaid credits, or cost-saving bundle packages — Choose the payment method that works best for you.
For high-volume filing, call us at (704) 684-4758 for customized pricing.
How to File Form 940 (sp) Online with TaxBandits
Create your free account and follow these simple steps:
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Step 1: Enter Employer Details
Enter your business information manually or upload data in bulk using our 940 Excel template.
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Step 2: Pay IRS Balance Due (If Any)
Enter wages, FUTA-taxable amounts, and any credit reduction details. Then choose a payment method to pay your FUTA tax if you have a balance due.
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Step 3: Review and Transmit
Sign electronically, review your return, and transmit it securely to the IRS. Get notified instantly of your filing status.
Ready to File? E-file seamlessly with TaxBandits!
Chosen by Industry Leaders and High-Volume Filers
How Much Does It Cost to E-File?
Compare our pricing and benefits to what you pay now
Why Choose TaxBandits?
- Includes Schedule A (sp) and 8453-EMP
- Free retransmission of rejected returns
- No-cost corrections
- Money-back guarantee
- World-class support in Spanish
Pay as You Go
$5.95/Form
Filing more? View Our Volume-Based Pricing
Choose Bundle Pricing
Save 10%
941 (sp)-Only Bundle
Includes 4 × Form 941 (sp)
$23.80 $21.42
Complete 94x Bundle
Includes 4 × Form 941 (sp) + 1 x
Form 940 (sp)
$29.75 $26.77
TaxBandits Supports Filing of Other Tax Forms Required for Puerto Rico Employers
Frequently Asked Questions
What is Form 940 (sp)?
Form 940 (sp) is the Federal Unemployment Tax Act (FUTA) form. FUTA provides funds to pay unemployment compensation for workers who lose their jobs. Only employers pay FUTA; they do not deduct FUTA from employee wages. The employer must pay a 6% tax rate on the first $7,000 each employee earns. If state unemployment taxes (SUTA) are paid on time, the FUTA tax can be effectively reduced to 0.6 percent.
When does Form 940 (sp) expire?
The deadline to electronically submit Form 940 is February 02, 2025.
Who is required to pay the FUTA tax?
- Employers will pay based on employee wages
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Employers are required to pay under the following conditions:
- If you paid $1,500 or more in wages to your employees during the annual fiscal year
- If you had an employee for a few hours during the day for 20 or more different weeks during the current or previous fiscal year
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For domestic workers
- If you paid cash wages of $1,000 or more in any annual quarter during the current or previous fiscal year
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For agricultural workers
- If you paid wages of $20,000 or more to agricultural workers in any annual quarter during the current or prior fiscal year or
- If you had more than 10 farm workers for a few hours during the day for 20 or more different weeks during the current or previous fiscal year
Who is exempt from paying FUTA tax?
- The tribal governments of the indigenous people
- Tax-exempt charitable organizations
- Employers of state or local governments
What is a credit reduction statement?
A Credit Reduction State is a state that has not yet repaid the money it borrowed from the federal government to pay unemployment benefits.
The federal unemployment tax credit will be reduced for a state based on the credit reduction rate. Use Schedule A (Form 940-PR) to calculate the credit reduction.
Visit https://www.taxbandits.com/payroll-forms/form-940-schedule-a/
What are the penalties for not submitting Form 940 (sp) on time?
If you don't file Form 940-PR by the due date, a penalty of 5% of the tax due will be applied. This amount will accrue monthly until the amount due is paid in full. The IRS will also penalize you for late payment or for not paying the full amount due. You will be charged 2-15% of the unpaid tax, depending on how many days late
you are. Learn More
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