On June 24, 2020, the Internal Revenue Service issued a draft version of the 2020 Form 940, Employer’s Annual Federal Unemployment Tax Return.
The draft Form 940, which is used by employers to report their annual federal unemployment tax liability, was not substantially revised from the 2019 version of the form.
A draft version of the form’s 2020 Schedule A, Multi-State Employer and Credit Reduction Information, was also released and did not contain substantial changes. The schedule, which is used to report additional tax owed because of federal unemployment tax credit reductions, lists the U.S. Virgin Islands as the only potential credit-reduction jurisdiction for 2020.
Finalized versions of Form 940 and Schedule A are expected to be released in November and are to reaffirm credit reduction percentages, which are to be finalized on November 10th by the U.S. Department of Labor.
As always, if there are any questions please do not hesitate to contact us or visit our website at www.thomas-and-company.com.