Filing Form 940-PR is necessary for employers to report their contribution to the Federal Unemployment Tax Act (FUTA). Most employers have to pay both federal & state unemployment contributions, but FUTA requires employers to pay this tax only. Eligibility varies, depending on wages paid, number of employees, and type of business employer.
What is Form 940-PR?
Form 940-PR is a form used by employers to report their contributions to the Federal Unemployment Tax Act annually. It must be filed if the employer paid wages of $1,500 or more to their employees in any calendar quarter during 2021 or 2022, or had one or more employees for at least some portion of any 20 or more different weeks in 2021 or 22 or more different weeks in 2022. Household employers and agricultural employers may have different thresholds for filing the form. Exempt organizations such as those described in section 501(c)(3) are generally not subject to FUTA, but may still have to pay the FUTA contribution depending on the circumstances.
IRS Form 940-PR – Who Needs to Fill It Out?
All employers – except those with only household or exempt employees – must pay the Federal Unemployment Tax Act (FUTA) contribution if they paid more than $1,500 in wages to their employees in any quarter in 2021 or 2022. They must also file Form 940-PR if they had one or more employees in at least some portion of 20 or more different weeks in 2021 or 2022. Additionally, household employers with $1,000 or more in wages in any quarter in 2021 or 2022 must also file Form 940-PR; however, agricultural employers must file if they paid $20,000 or more per quarter in 2021 or 2022. Finally, exempt organizations no longer have to pay FUTA contributions, but must file if they are paying wages on behalf of any other entity.
Step-by-Step: Form 940-PR Instructions For Filling Out the Document
Form 940-PR is an annual report used to provide the Federal Unemployment Tax Act (FUTA) with contribution information. Generally, employers pay both federal and state unemployment contributions, with only employers paying the FUTA contribution. The FUTA contribution applies to the first $7,000 paid to each employee in a calendar year, except for some employers who are exempt. Most employers who pay $1,500 or more to employees during a calendar quarter in 2021 or 2022, and have one or more employees for at least some portion of any 20 or more different weeks in 2021 or 22 or more different weeks in 2022, must file Form 940-PR. Household employers must pay the FUTA contribution if they paid at least $1,000 in cash wages during a calendar quarter in 2021 or 2022, and agricultural employers must do so if they paid $20,000 or more in cash wages during any calendar quarter in 2021 or 2022. Certain religious, educational, scientific, charitable, and other organizations described in section 501(c)(3) and exempt from paying contributions are generally not subject to FUTA contribution.
Below, we present a table that will help you understand how to fill out Form 940-PR.
| Information Required for Form 940-PR | Details |
|---|---|
| FUTA Report Type | Annual report for Federal Unemployment Tax Act (FUTA) contributions |
| Employer Contributions | Federal and state unemployment contributions |
| FUTA Contribution | Applies to the first $7,000 paid to each employee in a calendar year (some exemptions apply) |
| Filing Requirement | Employers who pay $1,500 or more to employees during a calendar quarter in 2021 or 2022, and have one or more employees for at least some portion of any 20 or more different weeks in 2021 or 22 or more different weeks in 2022, must file Form 940-PR. |
| Household Employers | Must pay FUTA contribution if they paid at least $1,000 in cash wages during a calendar quarter in 2021 or 2022. |
| Agricultural Employers | Must pay FUTA contribution if they paid $20,000 or more in cash wages during any calendar quarter in 2021 or 2022. |
| Exemptions | Certain religious, educational, scientific, charitable, and other organizations described in section 501(c)(3) and exempt from paying contributions are generally not subject to FUTA contribution. |
Do You Need to File Form 940-PR Each Year?
Generally, yes – all employers who paid wages of $1,500 or more in a calendar quarter in 2021 or 2022, or who employed one or more employees for any portion of at least 20 or more different weeks during 2021 or 2022, need to file Form 940-PR annually. However, for household employers, the wages paid must be $1,000 or more in a calendar quarter. Exempt organizations may not need to file, though some may if wages are paid on behalf of others. Final: if a business closed down or stopped paying wages, Form 940-PR must be filed to indicate this.
Download the official IRS Form 940-PR PDF
On the official IRS website, you will find a link to download Form 940-PR. However, to make it easier for you, we are providing the link in our article, which comes directly from the official irs.gov website! Click to download: Form 940-PR
Sources:
