Make note of FUTA Tax Filing Changes for 2012!
Posted by robkraft on January 15, 2012
I was unpleasantly surprised to learn today that the FUTA tax rate changed mid-year of 2011 and I didn’t know about it. Fortunately, this did not affect my 2011 tax filings in any way because I had no new employees and had already incurred the maximum unemployment tax for the year because my taxable earnings prior to July 1, 2011 exceeded $7,000 .
I learned this when I went to fill out Federal form “940 for 2011: Employer’s Annual Federal Unemployment (FUTA) Tax Return”. A google search brought me to a URL confirming the change mid-year http://bkl-cpa.com/news/2011/06/29/futa-tax-rate-change-effective-july-1-2011/).
When you fill out this form, make sure to include 401k contributions made to the employee in line 3, then deduct those contributions in line 4. Regardless of your numbers, there is a good chance that line 7a will end up with a balance of $7,000.00 (if you are self-employed). And if you worked all of last year, it is likely that line 7b is $7,000.00, 7c is $56.00, 7d is $0.00, 7e is $0.00, and line 8 is $56.00.
Since I live in Missouri and do not have a payment to submit, I send this completed form to
Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0046
By February 10, 2012 (by January 31, 2012 if you need to send money)
http://www.irs.gov/pub/irs-pdf/f940.pdf (form online)
http://www.irs.gov/pub/irs-pdf/i940.pdf (instructions online)