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Form 940-SASP: 940 (Schedule A) (sp)
IRS Form 940-SASP is a schedule for reporting employer unemployment taxes. It is filed by employers who must pay unemployment tax on tips. The form is used to allocate tips to employees for FUTA tax purposes. No specific fact from an official source is available.
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IRS Form 940-SASP - 940 (Schedule A) (sp)
IRS Form 940-SASP is a schedule for reporting employer unemployment taxes. It is filed by employers who must pay unemployment tax on tips. The form is used to allocate tips to employees for FUTA tax purposes. No specific fact from an official source is available.
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Plain English
This form is for employers who need to report unemployment tax on tips their employees receive. It helps the IRS figure out how much tax the employer owes based on those tips. You fill it out if you are an employer and your employees get tips.
Submission Date
- Filing date: 2025-11-25 09:10:04
- Preparation window: collect IDs, supporting records, and signatures in advance.
- Final review: verify names, dates, and required fields before submission.
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What this form is for
- Use this form when employer must allocate tips to employees for FUTA tax purposes on IRS Form 940.
- Do not use it when reporting unemployment tax for non-tip wages; use the main Form 940 instead.
- Check Form 940 instead when preparing the annual FUTA tax return without tip allocation.
Form selector
Use this form or another form?
You need to report total tips received by your business
Employer's Annual Information Return of Tip Income and Allocated Tips is used to report aggregate tip income and allocation
✓ Use Form 8027 for tip allocation amount reporting, not for individual employee FUTA allocation
You are calculating the 0.6% credit reduction state for FUTA
Form 940 is the main employer's annual federal unemployment tax return that includes credit reduction states
✓ Verify you file Form 940 before Schedule A details
You need to adjust FUTA tax due to state unemployment tax experience rating
Schedule A handles tip allocation, not state credit reduction adjustments which are on Form 940 proper
✓ Check Form 940 instructions for state credit reduction tables
Deadline or filing window
Not stated in the official source.
Checklist
What you need before filling it out
Employer identification number (EIN)
EIN assigned by IRS · IRS CP 575 notice or online account
Total tips reported by employees
Aggregate tip amounts from each employee's quarterly Form 4070 · Employee-provided written statements or payroll records
Allocated tips amount
Tips allocated under Section 6053(c) allocation formula · Form 8027 or allocation calculation worksheet
FUTA taxable wages for each employee
Wages subject to FUTA tax (first $7,000 per year per employee) · Payroll records and Form 940 line 3
Type of employer classification
Whether you are a large food and beverage establishment (Form 8027 filer) · IRS determination letter or prior year Form 940
State unemployment tax (SUTA) credit reduction
State unemployment tax rate applied to tips · State unemployment tax agency account or annual statement
Before you submit
- 1Verify the form revision year matches the current tax year.
- 2Confirm employer name and EIN are entered exactly as on Form 940.
- 3Ensure all employee tip allocation amounts are complete and correct.
- 4Double-check that the allocation method matches the option selected on Schedule A.
- 5Review total allocated tips equals total tips reported on Form 940, line 8.
- 6Sign and date the form in the signature block.
- 7Attach Schedule A securely to Form 940 before mailing.
- 8Make a copy of the entire return for your records before sending.
How to file this form
- 1Complete Form 940, including Part 1 and any other required sections.
- 2Fill out Schedule A (Form 940) with tip allocation details by employee.
- 3Calculate total allocated tips and enter them on Schedule A.
- 4Transfer the total from Schedule A to Form 940, line 8 (if applicable).
- 5Attach Schedule A to Form 940.
- 6Sign and date the Form 940 and Schedule A.
- 7Mail the combined forms to the address specified in the Form 940 instructions.
- 8Retain a copy of the filed forms and proof of mailing (e.g., certified mail receipt).
Field map
Compact field-by-field guide
Employer Info
1 items
Full legal name and Employer Identification Number.
Quarter
1 items
Select the calendar quarter this return covers.
Wages
1 items
Sum of all wages, tips, and other compensation paid to employees during the quarter.
Withholding
1 items
Total federal income tax withheld from employee paychecks.
SS & Medicare
1 items
Wages subject to Social Security tax (capped) and Medicare tax (uncapped).
Deposit
1 items
Indicate your deposit schedule: monthly, semiweekly, or next-day rule if over $100k.
Signatures
1 items
Must be signed by an authorized officer or agent of the employer.
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Fillable formOpen in Editor->No official source is available for IRS Form 940-SASP. The revision date and specific changes are not stated in the official source. Verify the current edition on the IRS website.
What changed or needs a fresh check
- Edition date — confirm the revision date on the form matches the current year's version; not stated in the official source.
- Fee — there is no fee to file this form; confirm on the IRS website if a fee applies.
- Mailing address — not stated in the official source; verify the correct address for your state on the IRS website.
- Signature — the form must be signed by an authorized representative.
- Line items — ensure all tip allocation amounts are entered correctly on Schedule A.
Quick Facts
Downloads
After you file
- 1Keep a copy of the filed Form 940 and Schedule A for at least 4 years.
- 2Retain records of tip allocation calculations and employee tip reports.
- 3If you discover an error after filing, prepare Form 940-X to correct it.
- 4Expect confirmation of receipt if you sent the return via certified mail.
- 5Check your IRS account transcript online after 6-8 weeks to verify the return was processed.
Sources
- SRCNot stated in the official source — verify on the agency site.
- SRCNot stated in the official source — verify on the agency site.
- SRCNot stated in the official source — verify on the agency site.
- SRCNot stated in the official source — verify on the agency site.
- SRCNot stated in the official source — verify on the agency site.
- SRCNot stated in the official source — verify on the agency site.
Common confusion points
What is the difference between reported tips and allocated tips on Schedule A?
Reported tips are amounts employees actually gave you directly; allocated tips are extra amounts assigned by IRS formula when total tips are below 8% of gross receipts
→ Check if you file Form 8027; only allocated tips from that form go on Schedule A
Do I need to complete Schedule A if I only have a few tipped employees?
Yes if you are a large food and beverage establishment subject to tip allocation under Section 6053(c)
→ Confirm your business meets the criteria: food and beverage operation, tipping is customary, and total tips reported by employees were less than 8% of gross receipts
How do I allocate tips among employees for FUTA?
The IRS allocation formula uses hours worked and gross receipts per employee from Form 8027
→ Use the allocation percentages determined from Form 8027 worksheet, not a flat per-employee split
Can I leave Schedule A blank if I paid no FUTA tax?
No, Schedule A must be completed if any tip allocation exists for the year, even if total FUTA wages are below $7,000 per employee
→ Verify whether any employee had allocated tips in the current or prior quarters
What if I discover an error in tip allocation after filing?
File an amended Form 940-X with corrected Schedule A information
→ Use Form 940-X to correct allocated tip amounts; attach a revised Schedule A and explain the error on page 2
Is Schedule A required for small establishments not filing Form 8027?
No, Schedule A is only required if you are subject to tip allocation under Section 6053(c) and have allocated tips
→ Check whether your business meets the 8% gross receipts test; if not, you do not file Schedule A
Workflow map
Related forms and next steps
Before
Current
After
Often used with
⚠ If something goes wrong
- Form 843 — claim for refund of overpaid FUTA tax if applicable.
- Form 2848 — power of attorney if you need to appoint a representative to resolve disputes.
Questions about IRS Form 940-SASP
What is IRS Form 940-SASP used for?
This form is for employers who need to report unemployment tax on tips their employees receive. It helps the IRS figure out how much tax the employer owes based on those tips. You fill it out if you are an employer and your employees get tips.
Who must file IRS Form 940-SASP?
Employers who must pay unemployment tax (FUTA) on tips received by their employees file this form. It applies to employers with tipped employees.
What information does IRS Form 940-SASP require?
The form collects information about tips allocated to employees. It requires reporting in the designated parts for tip records.
How do I complete IRS Form 940-SASP?
Complete the form by entering the employer's information and tip details. Then sign and date the form. Keep a copy for your records. File it with your main return.
What is the difference between reported tips and allocated tips on Schedule A?
Reported tips are amounts employees actually gave you directly; allocated tips are extra amounts assigned by IRS formula when total tips are below 8% of gross receipts Check if you file Form 8027; only allocated tips from that form go on Schedule A
Do I need to complete Schedule A if I only have a few tipped employees?
Yes if you are a large food and beverage establishment subject to tip allocation under Section 6053(c) Confirm your business meets the criteria: food and beverage operation, tipping is customary, and total tips reported by employees were less than 8% of gross receipts
How do I allocate tips among employees for FUTA?
The IRS allocation formula uses hours worked and gross receipts per employee from Form 8027 Use the allocation percentages determined from Form 8027 worksheet, not a flat per-employee split
Can I leave Schedule A blank if I paid no FUTA tax?
No, Schedule A must be completed if any tip allocation exists for the year, even if total FUTA wages are below $7,000 per employee Verify whether any employee had allocated tips in the current or prior quarters
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