The IRS recommends e-filing of employment tax returns—Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return, Form 941, Employer’s Quarterly Federal Tax Return, Form 943, Employer’s Annual Federal Tax Return for Agricultural Employees, Form 944, Employer’s Annual Federal Tax Return, and Form 945, Annual Return of Withheld Federal Income Tax—for many reasons. E-filing saves time by performing calculations and populating forms and schedules using a step-by-step process. Once submitted, the information is quickly available to the IRS, thus reducing processing time. Those who e-file receive missing information alerts. Also, electronically filed returns have fewer errors, which reduces a taxpayer’s chance of receiving an IRS notice.
Businesses can either self-file or obtain the services of a tax professional to file on behalf of the business. For the IRS’s list of companies that have passed the IRS Assurance Testing System (ATS) requirements for Software Developers of electronic Employment Tax (94x MeF) Returns, see https://www.irs.gov/e-file-providers/94x-mef-providers.
More information on e-filing payroll tax returns can be found here.