The only people who can handle change are coin collectors, sociopaths and the IRS. Of course, it’s possible for one person to be all three, but who hates themself that much?
Nevertheless, with each new year comes a stack of changes to IRS forms. This year the IRS has made a few changes to Form 940 that may impact you or your business.
IRS Announced FUTA “Credit Reduction States” For 2019!
The IRS has started a list of “credit reduction states.” That’s crazy, right? We didn’t know it was a thing either. Credit Reduction States are defined by the Department of Labor as “states that haven’t repaid money it borrowed from the federal government to pay unemployment benefits.” Currently, that list is comprised of just the US Virgin Islands (USVI), so maybe referring to it as a list is a bit aggressive.
Small businesses paying wages subject to the unemployment tax laws of a credit reduction state must pay additional federal unemployment tax via Form 940. That’s perfect! Pay more money with one simple form! Who said the IRS was evil?
Are Those The Only Changes?
Nope. One minor, yet very important, change the IRS made is assigning new addresses for where some employers file their 940. Make sure your records are current before filing to avoid being penalized! (We don’t know why you can’t just send them all to the same place either…)
Keeping track of these changes can seem daunting but TaxBandits is here to help. We keep up with the changes We don’t want you to miss the January 31st deadline so contact our US-based support team now to get started!!