About Schedule R for
IRS Form 940

Who Must File Schedule R for Form 940?

You must complete a Schedule R for Form 940 each time you file an aggregate Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. Aggregate Forms 940 are filed by agents approved by the IRS under section 3504. This requirement applies to Government and Fiscal/Employer Agents that serve self direction (also called participant direction and consumer direction programs). To request approval to act as an agent for a home care service recipient, you must file Form 2678, Employer/Payer Appointment of Agent, with the IRS, unless you are a state or local government agency acting as agent under the special procedures provided in Rev. Proc. 2013-39.


Purpose of Schedule R (Form 940)

Use Schedule R (Form 940) to allocate aggregate Form 940 data to each client employer represented by the agent. For the purposes of Schedule R (Form 940), home care service recipients are “clients.” An aggregate Form 940 may only be filed by section 3504 agents acting on behalf of home care service recipients.

If the agent has 15 or more clients, complete as many Continuation Sheets as necessary. Attach Schedule R, including any Continuation Sheets, to your aggregate Form 940.


When Must You File?

Schedule R is due with Form 940 for every year that an agent files an aggregate Form 940.

Schedule R may be filed electronically or by paper submission. However, agents filing for 1,000 or more clients must file a paper return unless they are e-filing through an approved transmitter that uses the IRS's Modernized e-File system.


For more information on Schedule R (Form 940) see: https://www.irs.gov/pub/irs-pdf/f940sr.pdf