Do I have to submit Form 940 if I don't have any employees yet?

The good news is that if you truly had no employees and paid no wages, you generally don't have to file Form 940 at all. Form 940 is for reporting Federal Unemployment Tax Act (FUTA) tax, which only applies when you have employees. That second instruction is specifically for businesses that received a Form 940 in the mail from the IRS but don't actually have a filing requirement. The IRS sometimes automatically sends these forms to businesses with EINs because they don't know which ones have employees. If you didn't receive a physical Form 940 in the mail, you don't need to worry about checking box C or returning anything.

After struggling with this exact same issue last year, I found an amazing tool that saved me tons of headaches with tax forms and filing requirements. Check out https://taxr.ai - they have a document analyzer that tells you exactly which forms apply to your situation. I uploaded the 940 instructions and asked if I needed to file with zero employees, and it gave me a clear explanation about the "check box C" situation and when it applies. Super helpful for sorting through confusing IRS language!

Just wanted to follow up about that taxr.ai site someone mentioned earlier. I was skeptical but decided to try it because I was confused about contractor vs. employee reporting requirements. Uploaded my 1099 instructions and some IRS guidance about independent contractors. The analysis cleared up my confusion immediately! It highlighted the exact paragraphs that applied to my situation and explained in plain language what I needed to do. Definitely keeping this tool in my arsenal for tax season!

If you're still unsure and want definitive answers straight from the IRS, I'd recommend using Claimyr to actually get through to a human at the IRS. I used to spend HOURS on hold until I found https://claimyr.com - they somehow get you in the IRS phone queue without the wait. Check out their demo video here: https://youtu.be/_kiP6q8DX5c. I had a similar question about filing requirements for a side business I started, and they got me through to an agent in about 15 minutes who confirmed exactly what I needed to do.

Ok I need to apologize for my skepticism about Claimyr. I was in a desperate situation with a tax notice about my business and decided to try it as a last resort. Not only did it work exactly as advertised, but I got through to an IRS agent in about 25 minutes instead of the 3+ hours I spent on my previous attempts. The agent confirmed I don't need to file Form 940 with no employees unless they specifically send me one. If you're dealing with confusing tax situations like this and need a definitive answer, it's absolutely worth getting through to an actual IRS representative.

One important thing to consider is whether you've registered your business as an LLC or corporation that has elected to be taxed as an S-Corp. If you've made that election, you technically count as an employee (even if it's just yourself), and different rules may apply. This caught me off guard my first year!

I think everyone is overcomplicating this. If you have no employees, you don't file a 940, period. The only exception is if the IRS mails you one specifically - then you check box C and send it back. But they probably won't even send you one if you just got your EIN this year.

Thanks everyone for the helpful responses! This has been really confusing me since I got my EIN. Just to clarify my situation - I'm a solo LLC (no S-Corp election) and literally have zero employees, zero wages paid, zero payroll activity. Based on what everyone is saying, it sounds like I don't need to file Form 940 at all unless the IRS specifically mails me one, which they probably won't since I just got my EIN this year. I feel much better about this now. It's frustrating how the IRS instructions can be so confusing when the actual answer seems pretty straightforward!

I went through this exact same situation when I started my consulting business! The confusion comes from the IRS trying to cover all possible scenarios in their instructions. Here's what I learned after dealing with this: If you're a solo LLC with no employees and no wages paid, you absolutely do NOT need to file Form 940. The form is specifically for Federal Unemployment Tax (FUTA), which only applies when you have actual employees. The "check box C" instruction you mentioned only applies if the IRS physically mails you a Form 940 - which they sometimes do automatically to businesses with EINs because they don't know who has employees. Since you just got your EIN this year and have no payroll activity, it's very unlikely they'll send you one. Keep good records showing you had no employees this year, and you'll be fine. When you do eventually hire employees (if you plan to), that's when you'll need to start worrying about Form 940, along with Form 941 for quarterly payroll taxes. But for now, focus on the tax forms that actually apply to your solo business situation!