IRS Form 940 (Schedule A) Spanish – In today’s diverse business landscape, employers operating across multiple states often face unique tax obligations under the Federal Unemployment Tax Act (FUTA). One key component is IRS Form 940, specifically Schedule A, which addresses multi-state operations and potential credit reductions. For Spanish-speaking employers or those preferring documentation in Spanish, the IRS provides a dedicated Spanish version: Formulario 940 (Anexo A) – Información para Empleadores Multi-Estado y Reducción de Crédito (Versión en Español). This article breaks down everything you need to know about this form, including who must file it, how to complete it, and the latest credit reduction details for 2025. Whether you’re a small business owner or payroll manager, staying compliant with FUTA taxes is essential to avoid penalties.
What Is IRS Form 940?
IRS Form 940 is the Employer’s Annual Federal Unemployment (FUTA) Tax Return. It allows employers to report and pay their annual FUTA tax, which funds unemployment compensation for workers who lose their jobs. The standard FUTA tax rate is 6% on the first $7,000 of wages paid to each employee, but most employers qualify for a 5.4% credit if they pay state unemployment taxes on time, reducing the effective rate to 0.6%.
Form 940 must be filed by employers who paid wages of $1,500 or more in any calendar quarter or had one or more employees for at least part of a day in 20 or more different weeks during the year. It’s due by January 31 of the following year, though extensions may apply if deposits are made on time.
What Is Schedule A for Form 940?
Schedule A is an attachment to Form 940 used by specific employers to calculate additional FUTA tax liabilities. It focuses on two main areas:
- Multi-State Employers: If you paid wages in more than one state, you must complete Schedule A to report FUTA taxable wages by state.
- Credit Reduction Information: Certain states may have “credit reduction” status if they haven’t repaid federal loans for unemployment benefits. This reduces the FUTA credit available to employers in those states, increasing their tax liability.
Without Schedule A, multi-state employers or those in credit reduction states risk underreporting taxes. The form ensures accurate computation of any additional amounts owed.
The Spanish Version of Schedule A (Formulario 940 Anexo A Español)
The IRS offers a Spanish-language version of Schedule A to assist employers who prefer or require documentation in Spanish. Titled “Información para Empleadores Multi-Estado y Reducción de Crédito (Versión en Español),” this form mirrors the English version but uses Spanish terminology for clarity.
Key features include:
- Instructions in Spanish for filling out state abbreviations, FUTA taxable wages, and credit reduction calculations.
- A list of all U.S. states, territories (like Puerto Rico and U.S. Virgin Islands), and their postal codes.
- Sections for marking credit reduction states and computing the total reduction.
This version is particularly useful for businesses in Spanish-speaking communities or international operations. It’s available for the 2025 tax year (covering 2025 wages) and can be downloaded directly from the IRS website.
Who Needs to File Schedule A Spanish Version?
You must attach Schedule A (in English or Spanish) to your Form 940 if:
- You are a multi-state employer who paid wages subject to unemployment taxes in more than one state.
- You paid wages in a credit reduction state, even if you’re not multi-state.
Household employers, agricultural employers, or those exempt from FUTA (e.g., certain nonprofits) generally don’t need to file Schedule A unless they meet the above criteria. If you’re filing Form 940 in Spanish (Formulario 940-SP), using the Spanish Schedule A ensures consistency.
Note: All employers, including those in Puerto Rico and the U.S. Virgin Islands, can opt for the Spanish version of Form 940 and its schedules.
Credit Reduction States for 2025: What You Need to Know
Credit reductions occur when states borrow from the federal government to fund unemployment benefits and fail to repay by November 10 of the tax year. For 2025, the U.S. Department of Labor has identified two jurisdictions with credit reductions:
| Jurisdiction | Credit Reduction Rate | Effective FUTA Rate | Max Tax per Employee ($7,000 Wage Base) |
|---|---|---|---|
| California | 1.2% | 1.8% | $126 |
| U.S. Virgin Islands | 4.5% | 5.1% | $357 |
Employers in these areas must check the corresponding boxes on Schedule A and calculate the additional tax. For example, if you paid $7,000 in FUTA taxable wages to an employee in California, you’d owe an extra $84 (1.2% of $7,000).
Connecticut and New York avoided reductions by repaying their loans before the deadline. Always verify the latest list, as it can change annually.
How to Complete IRS Form 940 Schedule A Spanish Version?
Filling out the Spanish Schedule A follows these steps (translated for reference; use the form’s Spanish instructions for precision):
- Identify Multi-State Status: If you paid wages in multiple states, mark the relevant states and enter FUTA taxable wages for each.
- Check Credit Reduction States: For 2025, enter wages paid in California or U.S. Virgin Islands, multiply by the reduction rate, and add to the total.
- Calculate Total Credit Reduction: Sum all reduction amounts and transfer to Form 940, line 11.
- Attach to Form 940: Submit with your main return.
Use the provided state abbreviation table (e.g., CA for California, VI for U.S. Virgin Islands). If no credit reduction applies, you may still need to file if multi-state. Consult the Spanish instructions (Instrucciones para el Formulario 940-SP) for details.
Where to Download the Form?
Download the latest Spanish version of Schedule A for Form 940 directly from the IRS: https://www.irs.gov/pub/irs-pdf/f940sasp.pdf. For the full Form 940 in Spanish: https://www.irs.gov/pub/irs-pdf/f940sp.pdf. Always use the most recent revision to ensure compliance.
Tips for Filing and Avoiding Common Mistakes
- Deposit Taxes Quarterly: If your FUTA liability exceeds $500 in a quarter, deposit via EFTPS to avoid penalties.
- Double-Check States: Ensure all multi-state wages are reported accurately to prevent audits.
- Seek Professional Help: For complex situations, consult a tax advisor or use payroll software that handles FUTA calculations.
- File Electronically: The IRS encourages e-filing for faster processing and fewer errors.
- Stay Updated: Credit reductions can vary; check IRS.gov annually for changes.
By staying informed, you can minimize your tax burden while supporting unemployment programs.
Conclusion
The Spanish version of IRS Form 940 Schedule A is a vital tool for multi-state employers navigating FUTA taxes, especially with 2025 credit reductions in California and the U.S. Virgin Islands. Proper filing ensures compliance and helps avoid costly penalties. For personalized advice, visit IRS.gov or contact a tax professional. Remember, accurate reporting starts with understanding your obligations—download the form today and prepare for a smooth tax season.