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860717
Schedule R (Form 940) (Rev. 12-2024)
Section references are to the Internal Revenue Code unless Client and Employee Information
otherwise noted.
On Schedule R, including any Continuation Sheets, you must
Future Developments report the following for each client.
For the latest information about developments related to Note: When entering amounts over 999.99 on Schedule R, don’t
enter commas.
Schedule R and its instructions, such as legislation enacted
after they were published, go to www.irs.gov/Form940. Column a. Your client’s EIN.
Column b. The state abbreviation of the client’s location.
General Instructions Column c (CPEO use only). Type of wages, tips, and other
compensation. Enter a code to report the type of wages, tips,
Purpose of Schedule R and other compensation paid to the individual(s) performing
Use Schedule R to allocate the aggregate information reported services for the client. If you paid more than one type of wages,
on Form 940 to each client. For purposes of Schedule R, the tips, or other compensation, you must use more than one line to
term “client” means (a) a home care service recipient identified report for that client and enter the applicable code for each line.
on the Form 2678, Employer/Payer Appointment of Agent; (b) a The following four codes are the only entries that can be made
customer who enters into a contract that meets the in column c.
requirements under section 7705(e)(2); or (c) a client who enters • A: Wages, tips, and other compensation paid under section
into a service agreement described under Regulations section 3511(a).
31.3504-2(b)(2) with a certified professional employer
organization (CPEO). If you have more than 15 clients, complete • B: Wages, tips, and other compensation paid under section
as many Continuation Sheets as necessary. Attach Schedule R, 3511(c).
including any Continuation Sheets, to your aggregate Form 940. • C: Wages, tips, and other compensation not reported under
code A or code B paid as a payor under a service
Who Must File? agreement described in Regulations section 31.3504-2(b)(2).
You must complete Schedule R if you file an aggregate Form • D: Wages, tips, and other compensation paid as an agent
940. Aggregate Forms 940 are filed by agents of home care under Regulations section 31.3504-1.
service recipients approved by the IRS under section 3504 and Column d. Total taxable FUTA wages allocated to the listed
by CPEOs. To request approval to act as an agent for a home client EIN from Form 940, line 7.
care service recipient, you must file Form 2678 with the IRS,
unless you are a state or local government agency acting as Column e. Total adjustments to FUTA tax allocated to the listed
agent under the special procedures provided in Rev. Proc. client EIN from Form 940, line 9 or line 10.
2013-39. Form 2678 must be previously filed and approved by Column f. Credit reduction amount allocated to the listed client
the IRS before filing Schedule R. To become a CPEO, you must EIN from Form 940, line 11.
apply through the IRS Online Registration System. Go to
www.irs.gov/CPEO for more information. Column g. Total FUTA tax after adjustments allocated to the
listed client EIN from Form 940, line 12.
When Must You File? Column h. Total FUTA tax deposits from Form 940, line 13, plus
If you’re an aggregate Form 940 filer, file Schedule R with your any other payments allocated to the listed client EIN.
aggregate Form 940 every year when your Form 940 is due. You must also report the same information for your
Agents may file Form 940 and Schedule R electronically or by employees on Schedule R, line 18.
paper submission. CPEOs must generally file Form 940 and Compare the total of each column on Schedule R, line 19,
Schedule R electronically. For more information about a CPEO’s including your information from Schedule R, line 18, to the
requirement to file electronically, see Rev. Proc. 2023-18, amounts reported on the aggregate Form 940. For each column
2023-13 I.R.B. 605, available at www.irs.gov/ total, the relevant line from Form 940 is noted in the column
irb/2023-13_IRB#REV-PROC-2023-18. heading.
Specific Instructions If the totals on Schedule R, line 19, don’t match the totals on
Form 940, there is an error that must be corrected before
Completing Schedule R submitting Form 940 and Schedule R.
Enter Your Business Information Paperwork Reduction Act Notice. We ask for the information
Carefully enter your employer identification number (EIN) and on Schedule R to carry out the Internal Revenue laws of the
the name of your business at the top of the schedule. Make sure United States. You’re required to give us the information. We
they exactly match the EIN and name shown on the attached need it to ensure that you are complying with these laws and to
Form 940. Check one of the “Type of filer” boxes to tell us if allow us to figure and collect the right amount of tax. You’re not
you’re a section 3504 agent or a CPEO. required to provide the information requested on a form that is
subject to the Paperwork Reduction Act unless the form
Calendar Year displays a valid OMB control number. Books or records relating
to a form or its instructions must be retained as long as their
Enter the calendar year for which you are filing your Form 940. contents may become material in the administration of any
Make sure that the year entered on the top of Schedule R Internal Revenue law. Generally, tax returns and return
matches the year on the attached Form 940. information are confidential, as required by section 6103. The
time needed to complete and file Schedule R will vary
depending on individual circumstances. The estimated burden
for employers filing Schedule R is approved under OMB control
number 1545-0029 and is included in the estimates shown in
the instructions for their employment tax return.
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