New Federal Unemployment Tax Return Available

A new simplified federal unemployment tax return is now available for certain employers to file for the 1989 tax year.

Form 940-EZ, Employer's Annual Federal Unemployment (FUTA) Tax Return, can be distinguished from Form 940 by its green typeface and streamlined appearance, reduced instructions and information required, and new two-part format that improves readability and cuts preparation time. The 940-EZ is especially suited for small businesses with uncomplicated tax situations and most household employers. Over 85 percent of all existing Form 940 filers who timely pay unemployment contributions to only one state may use the new form.

Employers were alerted to the development of this new form by Notice 896, which was mailed to employers with the third quarter employment tax returns 941, 941E and 942. The new form itself is included in Publication 51, Agricultural Employer's Tax Guide, and Publication 393, Federal Employment Tax Forms, and Package 942, Household Employer Tax Forms. New employers who do not receive these mailouts can call 1-800-424-FORM to receive the 940-EZ.

For most employers, Form 940-Ez can replace the standard Form 940 and employers are encouraged to file it if they are eligible. Form 940-EZ, like Form 940, is filed by January 31 following the close of the calendar year for which the tax is due.

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