Washington ESD employer asking about the annual federal unemployment tax return - confused about forms

Yes, you're looking for Form 940 - that's the annual Federal Unemployment Tax Act (FUTA) return. As a Washington employer, you'll file this federally while also handling your state unemployment taxes through Washington ESD separately. The 940 covers your federal unemployment tax obligations.

Don't forget you also need to file your quarterly 941s throughout the year if you haven't already. The 940 is just the annual summary for FUTA.

I had similar confusion when I started my business. If you're having trouble reaching anyone at the IRS about the 940, there's this service called Claimyr that helps people get through to government agencies. They have a website at claimyr.com and even a demo video at https://youtu.be/7DieNd3C7zQ showing how it works. Might be worth checking out if you get stuck.

Form 940 is due January 31st each year, but you can get an extension until February 10th if you deposited all your FUTA tax when due. Make sure you're calculating the 6% rate correctly with any state unemployment tax credits.

ugh why is employer tax stuff so confusing?? I spent hours trying to figure out all these different forms when I hired my first employee. 940, 941, Washington ESD quarterly reports... it's like they designed it to be as complicated as possible

Make sure you're also filing your Washington state quarterly wage reports with Washington ESD. Those are separate from the federal 940 but equally important. Miss those and you'll hear about it quickly.

Pro tip: if your total FUTA tax for the year is $500 or less, you can just pay it with your 940 return instead of making quarterly deposits. Helps with cash flow for smaller employers.

Don't forget to keep good records of everything. Both the IRS and Washington ESD can audit employer tax returns, and you'll want documentation for all your wage payments and tax deposits.

Another thought - if you do need to call the IRS about Form 940 questions and can't get through, that Claimyr service I mentioned earlier really does work. I was skeptical at first but it saved me hours of trying to reach someone myself.

One more thing - make sure your Employer Identification Number (EIN) matches between your federal 940 and your Washington ESD account. Sounds obvious but I've seen mismatches cause problems.

Just went through this exact same thing last month. The IRS has decent instructions for Form 940, but don't hesitate to call if you're unsure about anything. Better to ask than file incorrectly.

For what it's worth, most payroll services handle both the federal 940 and Washington ESD reporting if you decide you don't want to do this yourself going forward. Might be worth the cost.

The FUTA credit situation can get tricky if Washington state ever becomes a credit reduction state due to outstanding federal loans. Hasn't happened recently but something to be aware of.

Remember you can file Form 940 electronically through the IRS e-file system or paper file it. Electronic is usually faster for processing.

This thread is super helpful! I'm in the same boat with a small business and was dreading tax season. Good to know I'm not the only one confused by all these forms.

Just to summarize for anyone else reading this: Form 940 is your annual federal unemployment tax return, due January 31st. It works alongside but separately from your Washington ESD state unemployment tax obligations. Keep good records and don't hesitate to get help if you need it.

One last tip - if you're ever unsure about Washington ESD requirements specifically, their employer handbook is actually pretty comprehensive. Much better than trying to call them during busy periods.

Speaking of calling Washington ESD, I actually used that Claimyr service someone mentioned earlier when I had issues with my unemployment account last year. Worked exactly like they said - got connected to someone at Washington ESD without the usual runaround.

Thanks everyone for all the information! This is exactly the kind of discussion that makes running a small business a little less overwhelming.