Form 940-PR is used to report an employer’s contribution to the Federal Unemployment Tax Act (FUTA). Most employers pay both state and federal unemployment contributions, and must file the form if they have paid $1,500 or more in wages in any natural quarter in 2021 or 2022. Exempt organizations and household employers must also meet certain conditions in order to need to file the form.
What is Form 941-PR?
Form 940-PR is used to annually report contributions to the Federal Unemployment Tax Act (FUTA) to the Internal Revenue Service (IRS). Employers are responsible for paying FUTA contributions, and they apply to the first $7,000 an employee earns during a calendar year. Filing Form 940-PR is necessary if the employer pays $1,500 or more to employees in any natural quarter during 2021 or 2022, or if the employer has one or more employees for at least 20 different weeks in 2021 or 22 different weeks in 2022. Household and agricultural employers must also file this form if certain conditions are met. Successor employers and exempt organizations may also need to file Form 940-PR, depending on their particular circumstances.
IRS Form 941-PR – Who Needs to Fill It Out?
Form 940-PR must be filed by employers who paid wages of $1,500+ in any natural quarter during 2021/2022, those who had one or more employees for at least some portion of 20 or more weeks in 2021 or 22 or more weeks in 2022, sold/transferred businesses, and households who paid $1,000+ in any calendar quarter. Also, agricultural employers who paid $20,000+ in cash in a quarter or employed 10+ agricultural employees in 20+ weeks must file Form 940-PR. Exempt organizations described in section 501(c)(3) and exempt from taxes under section 501(a) do not have to file the form, unless they pay wages on behalf of others.
Step-by-Step: Form 941-PR Instructions For Filling Out the Document
Filling out Form 940-PR is the process of annually reporting and contributing to the Federal Unemployment Tax Act (FUTA). It is important to note that only employers pay the FUTA contribution and not employees. Who should file Form 940-PR? All employers who paid $1,500 or more quarterly in 2021 or 2022 to employees, had employees for 20 or more weeks in 2021 or 22 or more weeks in 2022, or if the business was sold or transferred during the year must file Form 940-PR. Alternatively, if no wages were paid to employees in 2022, box c should be marked and the form should be filed with the IRS. For household employers, they must pay FUTA tax if they paid cash wages of $1,000 or more during any calendar quarter in 2021 or 2022. Additionally, if employers are exempt 501(c)(3) organizations, they may still be subject to FUTA tax depending on their circumstances.
Below, we present a table that will help you understand how to fill out Form 940-PR.
| Who should file Form 940-PR? | Requirements |
|---|---|
| All employers | Employers who paid $1,500 or more quarterly in 2021 or 2022 to employees, had employees for 20 or more weeks in 2021 or 22 or more weeks in 2022, or if the business was sold or transferred during the year must file Form 940-PR. |
| Household employers | They must pay FUTA tax if they paid cash wages of $1,000 or more during any calendar quarter in 2021 or 2022. |
| Exempt 501(c)(3) organizations | They may still be subject to FUTA tax depending on their circumstances. |
| No wages paid in 2022 | If no wages were paid to employees in 2022, box c should be marked, and the form should be filed with the IRS. |
Do You Need to File Form 941-PR Each Year?
If you paid wages of $1,500 or more to your employees in any natural quarter during 2021 or 2022, or you had one or more employees for at least some portion of 20 or more different weeks in 2021 or 22 or more different weeks in 2022, you must file. If you are a household employer, you must pay FUTA tax on wages if you paid cash wages of $1,000 or more during any calendar quarter. For agricultural employers, you must file Form 940-PR if you paid $20,000 or more in cash wages to your employees during any calendar quarter in 2021 or 2022. However, religious, educational, scientific, charitable, and other organizations described in section 501(c)(3) and exempt from taxes under section 501(a) generally are not subject to FUTA tax.
Download the official IRS Form 941-PR PDF
On the official IRS website, you will find a link to download Form 941-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 941-PR
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