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How to Prepare Form 940 in QuickBooks (Pro/Premier/Enterprise)

Learn where and how to file form 940 in QuickBooks Windows for all sizes of Business.

Tax reporting and filing can be a daunting task, especially if you are new to it. However, the QuickBooks accounting application makes it easy for you. You can electronically pay tax and file Form 940 in QuickBooks easily as per the Federal Unemployment Tax Act (FUTA) tax. Moreover, its advanced payroll tax table update feature also keeps you up-to-date with any recent changes to the tax rates. 

Basically, the government introduced Form 940 to report the annual Federal Unemployment Tax Act (FUTA) tax. FUTA tax and the Unemployment tax together provide funds for unemployment compensation which is used for the workers who have lost their jobs. There is a certain procedure that you need to follow in order to file Form 940 in QuickBooks Desktop. This article will discuss how to pay FUTA tax and file Form 940 in QB. You have to follow different methods to file Form 940 in QuickBooks desktop payroll: Basic/Standard, Assisted, and Enhanced. All of these are discussed in this blog below, so keep going through the blog till the end.

Steps To File Form 940 In QuickBooks For Different Payroll Services

The steps to e-file and e-pay Federal Form 940 in QuickBooks depend on which product you are using. It is easiest to file on QuickBooks-assisted payroll and a bit complex on basic/standard payroll service.

  • Intuit file Form 940 and pay taxes for users using QuickBooks Desktop Payroll Assisted version.
  • Users must pay taxes and file forms manually in QuickBooks Desktop Payroll Basic/Standard.
  • Users can e-file and e-pay their state taxes in the QuickBooks Desktop Payroll Enhanced version. 

Note:- For some states, you can create a State Unemployment Insurance file in QuickBooks and then directly upload it to the state agency website.

Filing Form 940 For QuickBooks Desktop Payroll Assisted Version

Intuit file Form 940 and pay taxes on the behalf of users availing QuickBooks Payroll Assisted Version services. Although it does offer an option to view and print out these forms. If an error arise while trying to view these forms, you need to disable your pop-up blocker. 

How To Manually Pay And File Form 940 In QuickBooks Desktop Payroll Basic/Standard?

The process of filing Form 940 in QuickBooks Desktop Payroll Basic/Standard requires users to manually schedule tax payment and create a form for their employees. Users will also have to send the form manually to their state agencies.

Note:- You can manually pay and file Form 940 for an enhanced version if you cannot e-pay or e-file them. These are the steps you need to follow:- 

Generate and Print your Tax Payment

Step 1: Generate a scheduled Payment

QuickBooks’ scheduled payments feature can help you keep track of when your payroll taxes are due so that you don’t forget them. Even if you can’t use e-payments in QuickBooks, you can set up recurring payments:-

  • Go on the Employees menu and select Payroll Taxes and Liabilities. Then click Edit Payments Due Dates/Methods.
  • Tap on Scheduled Payments.
  • Choose Form 940 from the list and click on Edit.
  • Go to Payments Method and choose Check.
  • Enter in the required credentials of your account.
  • Choose Payments Frequency based on your state guidelines.
  • Now tap on Continue.
  • Choose the bank account you wish to use for tracking payments in QuickBooks and select Edit. It should be the same as the bank you used while registering with IRS and state agencies.
  • Click on Finish once you are done.

Step 2: Create and print your tax payments 

You can keep track of federal tax payments in QuickBooks. The payment will be made electronically through the IRS website. You can create and print a check to send to the state authorities for state tax payments:-

  • Go to the Employees menu and select Payroll Taxes and Liabilities. Then select Pay Scheduled Liabilities.
  • Choose Form 940 from the list and click on View/Pay. You can check the amount you are paying in tax.
  • Click on Save & Close.
  • Tap on Print Checks.

Also Read:- How to fix QuickBooks error h202?

Prepare and Print your Payroll tax forms.

Step 1:  Pay or Record all the Tax Payments

Before preparing the tax form, you need to pay all the taxes related to the form in QuickBooks, otherwise it will show amount due on the form. Thereafter, you can proceed to the step 2.

Step 2: Prepare and print your payroll tax form

  • Go to the Employees menu, select Payroll Tax Forms and W-2s, and tap on Process Payroll Forms.
  • Choose Form 940 from the list.
  • Click on Create Form.
  • Select the Filling Period from the given list and tap on OK.
  • Fill out the Interview section of your application. Fill in any green-highlighted parts and double-check any pre-filled information on the form. 
  • Tap on the Next button and review all the pages of Form 940.
  • Click on Save as PDF or print for your record button if you are ready to print them. You can also tap on Save and Close if you need to come back. 

Step 3: Send your Form 940 to the tax agency.

You need to send your QuickBooks payroll form 940 to your state agency. You can find the information regarding where you need to send it on your tax forms. The agency you need to send it to depends on which state you work in. 

How To Submit A Payroll Form 940 In QuickBooks Desktop Payroll Enhanced?

Users can electronically submit payroll Form 940 in QuickBooks Desktop Payroll Enhanced through the application itself. It is a fast, easy way to ensure that you stay compliant with the IRS. These are the steps you need to follow:-

Enroll and Set-up Your Federal Tax 940 in E-payment mode

Step 1: Enroll yourself in IRS Electronic Federal Tax Payment System (EFTPS)

There are two different courses of action that could be followed. What you need to do is based on whether your business was established after 2011 or before 2011. 

  • For businesses enrolled after 2011: Business owners must register their business with EFTPS just once if they enrolled after 2011. If you are unaware of whether your business is registered or not, contact the IRS at 1.800.555.4477 if you are not sure about it.
  • For businesses enrolled before 2011 : Go to the EFTPS.gov website and tap on the Enrollment tab. Follow the onscreen instructions and complete the enrollment procedure. You will receive your PIN and enrollment number by mail within 7 to 10 business days.These are the steps to follow after getting your 4-digit EFTPS PIN
  • Go on EFTPS.gov website.
  • Click on the Login menu.
  • Enter in the required credentials (EIN, EFTPS PIN, your bank account number or the last 8 digits of your enrollment number) and then continue the process of generating your password.

Note:- Call the IRS within two business days after completing your enrollment if you need to make a payment before receiving your PIN. Their agent will take your payment if the information you supply matches IRS records. The agent will not provide you with the PIN due to security reasons.

Step 2: Schedule and set-up your tax payment for e-payment

  • Go on the Employees menu and select Payroll Taxes & Liabilities. Then tap on Edit Payment Due Dates/Methods. 
  • Click on Scheduled Payments and choose Federal 940. 
  • Select your payment method as E-pay in the Edit Payment Schedule window.
  • Select the frequency of paying taxes.
  • Click on E-pay accounts and choose the account type. Also, verify that your bank information is right.
  • Tap on Finish. 

You may also read:- 3 best ways to fix error code 40003 QuickBooks & update payroll

Enroll and set-up e-file Form 940

Once you have set your QuickBooks application to pay your taxes electronically, the next step is to set your system to file annual Form 940. These are the steps you need to follow

Step 1:- set-up your method to file your federal form

  • Go to the Other Activities list and choose Manage Filling Methods. 
  • Tap on Filing Methods, choose Federal Form 940, and tap on Edit.
  • Click on Filing as Responsible Individual under Select how you want to file the Form.
  • Choose E-File and then select Finish.

Follow the below-mentioned steps if you haven’t enrolled in the IRS e-file program.

Step 2: Enroll your business in the IRS e-file program

  • Select Enrollments in the Filing Methods screen.
  • Click on IRS and then tap Edit.
  • Follow the onscreen instructions and verify your EIN. Enter in the required information and then tap on Next.

Note:- The person must be a direct employee of your organization whose information is added, not a third-party vendor or accountant. 

  • Click on Send information.
  • You are set to pay and file Form 940 in QuickBooks.

You might also face errors when you try to file form 940 in QuickBooks  Desktop Payroll Enhanced.

Here is How to Fix Form 940 in QB Desktop Payroll Enhanced 2022

For troubleshooting Form 940 in QuickBooks Desktop Payroll Enhanced 2022, review data entry for accuracy, validate employee information, check for software updates, and consult official IRS guidelines. 

Step 1: Make sure to know the root cause of the error

To pinpoint issues with Form 940 in QuickBooks Desktop Payroll Enhanced 2022, follow these steps:

  • Double-check all entries for accuracy and completeness.
  • Ensure employee details are correct and up to date.
  • Ensure you have the latest updates installed to address any software-related issues.
  • Refer to IRS guidelines for Form 940 to verify compliance and accuracy.

Step 2: Fix the items on the payroll

To ensure accurate tax tracking for Federal Unemployment Tax (FUTA), follow these steps:

  • Navigate to Lists and click on Payroll Item List. Right-click on the relevant payroll item and select Edit Payroll Item.
  • Proceed to Tax Tracking Type and click Next. Confirm that the payroll item and its tax tracking type align; avoid using the “Other” type.
  • If the tax tracking type is correct, proceed to the next step. Adjust the tax tracking type, click Next twice, and then select Complete if necessary.
  • Move to the next step by clicking Next. Review Federal Unemployment tax in the Taxation window. Ensure Federal Unemployment is either selected or deselected as needed.
  • Complete the process by clicking Finish.

Step 3: Fix the wages of the employees added to the payroll

This is quite an easy step; you will need to quickly follow a few things to ensure the process’s completion.

  • Create a Backup of Your Company File and save it.
  • Run a Payroll Checkup.
  • If the Payroll Checkup doesn’t resolve the issue, manually adjust the wage base for each employee with the incorrect payroll item.

Seek Experts Guidance On How To File Annual Form 940 In QuickBooks

So, this has been all about QuickBooks Form 940 instructions. You must be registered with EFTPS, and the IRS has your credentials so that you can file and pay these taxes quickly. Always double-check the information you enter in these forms, as it is a matter of federal agencies. If you cannot file QuickBooks payroll form 940, contact experts and they can provide you with a better help on where to file 940.

Frequently Asked Questions

1: How do I view archived Form 940 in QuickBooks?

You can view the archived Form 940 in QuickBooks by going tot the Taxes section in Payroll Tax. Then, select Filings < Resources and then Archived forms and filings. Now, from the drop-down menu, you can filter the form you want to view and then click View.

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