Preparing a Form 940 or 941 can be a daunting task for people who aren’t well versed with tax laws and principles of accounting. You may end up making a mistake while filing or filing the tax form, requiring you to file an amended version later. You can do so with both tax forms, but it is generally better to prepare 940 on the Old form in QuickBooks correctly in the first place.
When you make a mistake on your form 940 or 941, you can file an amended tax form to make the appropriate corrections. Fortunately, you can file these amended tax forms directly from QuickBooks desktop payroll enhanced and assisted.
Users with assisted versions of payroll can reach out to Intuit, while the users with the enhanced payroll subscription can follow the procedure offered in this post to file an amended form 940.
In this post, you’ll learn how to prepare 940 on old forms in QuickBooks and also file amended tax forms through QuickBooks desktop.
Process of Filing An Amended Tax Form
Filing an amended Form 940 doesn’t require a lot of work because you can use the same form to file the amendment. You can simply input all the corrections in the new form and mark the amendment form on the top right corner to make the IRS aware that you’re making corrections using this new form. I’ve also provided the link for detailed instructions on filling the Form 940 so that you can enter accurate data while filing your form 940.
Step #1: Choose the correct amended tax form
The amendment form that you use depends on the form that you filled incorrectly. You should file the amendment form as soon as you find inaccuracies in the tax forms that you’ve already filed with the IRS.
Here are the amendment forms that you can choose among:
- Form 940: there’s no separate amendment form for Form 940. You can file the same form once again with the correct information to make the necessary amendments and provide accurate information to the federal government.
- Form 941-X: this is the amendment form for federal tax form 941. This form is used to correct the following information:
- Compensations such as wages, bonuses, and tips
- Income tax withheld from various sources of compensation
- Taxable social security compensations
- Taxable Medicare wages
For Form 940, you can simply check the box in the top right corner that states amended return – it’s box A on page 1 on Form 940. Then you must fill in the amended form just as the original one, but with current information.
Step #2: File the amended Form 940
Now that you’ve correctly filled out Form 940, you can file it once again to amend any inaccuracies that went into the previous form. While the method to file the form is similar, you have to choose the Amended Return option to let QuickBooks know that you’re filing the form again to make corrections to the original one.
Here are the steps to prepare 940 on the old form in QuickBooks to amend it:
- From the Employees menu, choose Payroll Tax Forms & W-2s.
- Click on Process Payroll Forms.
- Go to the File Forms section, then choose “Annual Form 940/Sch. A – Employer’s Annual Federal Unemployment (FUTA) Tax Return”.
- Choose to Create Form, then input the period for which you’re filing the Return. Click on Ok.
- Choose the Amended Return checkbox, then hit next.
- Review the summary of the information that you’ve provided on the amended tax form. You can also compare it to the original form that you submitted to the IRS.
- Enter an explanation for amending the tax return in the provided section.
You’ve to print and sign the form before you can mail it to the IRS. The IRS has provided detailed instructions on mailing an amended tax form. Use these instructions to make sure that the amended form reaches the IRS in time.
Note: you can similarly file an amended form 941-X, but you’ll have to input a lot more information in it than in form 940.
Setting up E-file and E-pay Schedule in QuickBooks Desktop
Before you can file and pay taxes directly through your accounting software, you need to activate the e-file and e-pay features for federal taxes on the QuickBooks desktop. As filing these taxes are essential tasks, filing them electronically through QuickBooks can substantially reduce the efforts required to get it done.
Step #1: Enroll in EFTPS
The Electronic Federal Tax Payment System enables you to file and pay taxes online. But you need to enroll in this program first before you can use it to file your taxes. You can get in touch with the IRS for more information.
Or you can go to http://eftps.gov/ for more information about electronic filing and payment of federal taxes.
Step #2: Set up a schedule for electronic tax payment
A schedule for electronic tax payment ensures that you file and pay your taxes on time. This reduces your chances of getting audited by the IRS for failure to pay taxes on time. Further, the setup requires only a few minutes and gives you a good amount of returns over time.
To set up and schedule your tax electronic tax payments, follow the steps provided below:
- From the Employee menu, click on Payroll Taxes & Liabilities.
- Choose Edit Payment Due Dates/Methods.
- Click on Schedule Payments.
- Choose Federal 941/944/943.
- Click on E-Pay in the Edit Payment Schedule window.
- Choose the frequency of the payment.
- Click on E-pay accounts, then choose the correct account type.
- Verify the information of your bank account.
- Click on Finish.
Step #3: set up electronic filing for taxes
After you’ve set up a schedule for tax payment, you can also set up the electronic filing of tax forms. The process can be completed directly from the QuickBooks desktop. As there are many taxes a business needs to file, you can set up tax filing once and reap benefits for all types of taxes your business has to file.
You’ve successfully created the amended form 940. You can now take out a printout of the amended tax form and mail it to the IRS. Make sure to input a decent explanation for filing the amended form, because it helps not only the IRS but also you. You can similarly use Form 941-X to make amendments to Form 941.
Frequently asked questions
What is the purpose of Form 940?
The instructions for Form 940 are present on the backside of the tax form itself. You can find information such as who must file this form in those instructions. Form 940 helps you and the IRS evaluate the amount of FUTA (Federal Unemployment Tax Act) tax that your business needs to pay for a given tax period. You can also use the information about your state taxes to get some relief on paying these taxes. Generally, those paying a state unemployment tax have to pay a lower percentage of FUTA tax.
Where do I find the amendment form for form 940?
Unlike form 941, which is amended using form 941-x, form 940 has no separate amendment form. You can use the same form to file the amendment with an additional step – you have to checkmark the amendment form option on the top right corner of the form. You can then simply take a printout of the form and mail it to the IRS to make the necessary adjustments to the information you provided earlier.
What is the due date for filing Form 940?
You have to file Form 940 by the end of January 31, 2022. You may file it by February 10, 2022 only if you’ve deposited the federal unemployment tax before it was due. If you’ve mailed the form to the IRS before the due date but the agency received it after the due date, then your form will be treated as if it came on time. But if the form was mailed after the due date, the IRS will see it as a default.
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