If you are an employer, other than a household or agricultural employer,
you may have to file a Federal Unemployment tax return, Form 940 (PDF) or Form 940EZ (PDF) for 2003, if either
of the following situations apply:
- You paid $1,500 or more in wages during any calendar quarter in 2002 or
2003, or
- You had at least one employee work for some part of a day in any twenty
or more different weeks in 2002 or 2003.
Count all regular, temporary, and part–time employees for wages paid.
If you are a household employer, you will generally file Schedule H, Form 1040 (PDF) , if you paid cash wages of $1,000 or more
in any calendar quarter of 2002 or 2003 for household work in your private
home. Also, file Form 940 or 940EZ if you paid cash wages
of $1,000 or more in any calendar quarter in 2002 or 2003 for household work
in a local college club, or a local chapter of a college fraternity or sorority.
If you are an agricultural employer, you will have to file Form 940 or 940–EZ for
farm workers if:
- You paid cash wages to farmworkers of $20,000 or more in any calendar
quarter in 2002 or 2003, or
- You had 10 or more farm workers during some part of a day for at least
one day during any 20 or more different weeks in 2002 or 2003. Bona fide residents
of Puerto Rico should refer to Topic 903.
Include cash compensation paid to aliens (also known as workers with H–2
(A) visas) admitted on a temporary basis to the U.S. to perform farm work,
to see if you meet either test. However, compensation paid to H–2 (A)
visa holders is not subject to the Federal unemployment tax and should be
entered as "Exempt Payments" on line 2 of either Form 940 or 940–EZ.
The gross Federal unemployment tax rate for 2003 is 6.2% and is figured
on the first $7,000 of wages you paid each employee in 2003. If you paid all
of the state unemployment tax timely on the same wages, you are allowed a
state credit of up to 5.4%. The Federal tax rate after the credit is .8%.
If you do not pay the state unemployment tax timely, your credit for the
late payment(s) is limited to 90% of the amount you would have been allowed,
if paid on time.
You may be able to file Form 940–EZ, a simplified Federal
unemployment tax return for 2003, if you meet three tests:
- You made state unemployment contributions to only one state,
- You paid all your state contributions by January 31, 2004, (February 10th
if you deposited all FUTA tax when due), and
- All of your Federal unemployment tax wages were also taxable for your
state's unemployment tax.
The due date for filing the 2003 Form 940 or Form 940–EZ is
January 31, 2004. However, if you deposited all FUTA tax when due, you have
until February 10, 2004, to file. For more information, refer to Publication 15, Employer's Tax Guide, and Publication 15-A, Employer's
Supplemental Tax Guide.Additionally, if you are interested in the Form
940 e-fileProgram or the 940 On-Line option, please visit our website
at www.irs.gov and click on the e-file logo or call toll free 1–866–255–0654.
For information on deposit rules, refer to Topic 759.
