What are 940 & 941 Business Taxes?The form 940 is the Employer’s Federal Unemployment Tax Return, which is used to report your Annual Federal Tax Act, or FUTA, taxes. The FUTA tax supplies funds, along with any state unemployment tax, to pay unemployment compensation benefits to workers who are no longer employed. Employees are not responsible for paying these taxes, nor do they get deducted from the employees’ payroll. This is solely the responsibility of the employer.
Filing 940 & 941 Business Taxes LateIf you file either of these forms late, the IRS will assess fees and penalties to the amount you already owe. To make sure you do not incur any fees or penalties, make sure your taxes are filed and paid on time, and make sure your bank honors the payments. The last thing you want to do is pay late taxes, of any type, to the IRS. If you are late and receive a notice, contact the IRS or a tax professional, and depending on the reason, they may allow for the penalties to be removed, under reasonable-cause.
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