If you own a small business and you have employees, you have to file Form 940 at the end of the year. The deadline for filing is the 31st of January the following year. The form will include information such as the total amount of wages paid, wages that are subject to federal unemployment tax, the federal unemployment tax liability for each quarter, all federal unemployment tax paid in previous quarters, and the remaining balance due.

In the event that your quarterly federal unemployment tax liability is more than $500.00, the IRS will require you to make quarterly payment. If your liability in one quarter does not exceed $500.00, you do not have to pay tax for that quarter, and the liability will be carried over to the following quarter. For instance, if the total federal unemployment tax liability that is incurred in the first quarter is $400.00, you are not required to make any payment. Then, in the second quarter, you have a liability of $300.00.

Anything else you wanted to know about the 940 form in 2011?