941 SCH R Allocation Schedule for Aggregrate Form 941 Filers

Schedule R (Form 940): Allocation Schedule for Aggregate Form 940 Filers

OMB No. 1545-0029

860517

(Rev. December 2024)
Department of the Treasury — Internal Revenue Service

Report for calendar year:
Employer identification number (EIN)

(Same as Form 940):

—

Name as shown on Form 940
Type of filer (check one):

Section 3504 Agent

Certified Professional Employer Organization (CPEO)

Read the instructions before you complete Schedule R. Type or print within the boxes. Complete a separate line for the amounts allocated
to each of your clients. The term “client” as used on this form includes the term “customer.” See the instructions.
(a)
Client’s employer
identification number
(EIN)

(b)
State
abbreviation
from Form
940, line 1a,
or Schedule A
(Form 940)

(c)
Type of wages, tips, and
other compensation
(CPEO use only)

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16 Subtotals for clients. Add all

amounts on lines 1 through 15.

(d)
Total taxable FUTA
wages allocated to
the listed client EIN
from Form 940, line 7

(e)
Total adjustments
to FUTA tax
allocated to the
listed client EIN from
Form 940, line 9 or line 10

(f)
Credit reduction amount
allocated to the
listed client EIN from
Form 940, line 11

(g)
Total FUTA tax
after adjustments
allocated to the
listed client EIN from
Form 940, line 12

(h)
Total FUTA tax deposits
from Form 940, line 13,
plus any payment made
with the return allocated
to the listed client EIN

.
.
.
.
.
.
.
.
.
.
.
.
.
.
.

.
.
.
.
.
.
.
.
.
.
.
.
.
.
.

.
.
.
.
.
.
.
.
.
.
.
.
.
.
.

.
.
.
.
.
.
.
.
.
.
.
.
.
.
.

.
.
.
.
.
.
.
.
.
.
.
.
.
.
.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

17 Enter the combined subtotal

from line 23 of all Continuation
Sheets for Schedule R (Form
940).

18 Enter Form 940 amounts for
your employees.

19 Totals. Add lines 16, 17, and

18. The column totals must
match the related lines on the
aggregate Form 940.

For Paperwork Reduction Act Notice, see the instructions.

www.irs.gov/Form940

.
Cat. No. 53082A

Schedule R (Form 940) (Rev. 12-2024)

Page

of

Continuation Sheet for Schedule R (Form 940)
860617

(Rev. December 2024)

Report for calendar year:
Employer identification number (EIN)

(Same as Form 940):

—

Name as shown on Form 940
Type of filer (check one):

(a)
Client’s employer
identification number
(EIN)

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23 Subtotals for clients. Add lines
1 through 22. Include the
subtotals from line 23 on
Schedule R (Form 940), line 17.

Section 3504 Agent

(b)
State
abbreviation
from Form
940, line 1a,
or Schedule A
(Form 940)

Certified Professional Employer Organization (CPEO)

(c)
Type of wages, tips, and
other compensation
(CPEO use only)

(d)
Total taxable FUTA
wages allocated to
the listed client EIN
from Form 940, line 7

(e)
Total adjustments
to FUTA tax
allocated to the
listed client EIN from
Form 940, line 9 or line 10

(f)
Credit reduction amount
allocated to the
listed client EIN from
Form 940, line 11

.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.

.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.

.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.

.

.

.

(g)
Total FUTA tax
after adjustments
allocated to the
listed client EIN from
Form 940, line 12

(h)
Total FUTA tax deposits
from Form 940, line 13,
plus any payment made
with the return allocated
to the listed client EIN

.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.

.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.

.

.

Schedule R (Form 940) (Rev. 12-2024)

860717
Schedule R (Form 940) (Rev. 12-2024)

Section references are to the Internal Revenue Code unless
otherwise noted.

Future Developments
For the latest information about developments related to
Schedule R and its instructions, such as legislation enacted
after they were published, go to www.irs.gov/Form940.

General Instructions
Purpose of Schedule R
Use Schedule R to allocate the aggregate information reported
on Form 940 to each client. For purposes of Schedule R, the
term “client” means (a) a home care service recipient identified
on the Form 2678, Employer/Payer Appointment of Agent; (b) a
customer who enters into a contract that meets the
requirements under section 7705(e)(2); or (c) a client who enters
into a service agreement described under Regulations section
31.3504-2(b)(2) with a certified professional employer
organization (CPEO). If you have more than 15 clients, complete
as many Continuation Sheets as necessary. Attach Schedule R,
including any Continuation Sheets, to your aggregate Form 940.

Who Must File?
You must complete Schedule R if you file an aggregate Form
940. Aggregate Forms 940 are filed by agents of home care
service recipients approved by the IRS under section 3504 and
by CPEOs. To request approval to act as an agent for a home
care service recipient, you must file Form 2678 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. Form 2678 must be previously filed and approved by
the IRS before filing Schedule R. To become a CPEO, you must
apply through the IRS Online Registration System. Go to
www.irs.gov/CPEO for more information.

When Must You File?
If you’re an aggregate Form 940 filer, file Schedule R with your
aggregate Form 940 every year when your Form 940 is due.
Agents may file Form 940 and Schedule R electronically or by
paper submission. CPEOs must generally file Form 940 and
Schedule R electronically. For more information about a CPEO’s
requirement to file electronically, see Rev. Proc. 2023-18,
2023-13 I.R.B. 605, available at www.irs.gov/
irb/2023-13_IRB#REV-PROC-2023-18.

Specific Instructions
Completing Schedule R
Enter Your Business Information
Carefully enter your employer identification number (EIN) and
the name of your business at the top of the schedule. Make sure
they exactly match the EIN and name shown on the attached
Form 940. Check one of the “Type of filer” boxes to tell us if
you’re a section 3504 agent or a CPEO.

Calendar Year
Enter the calendar year for which you are filing your Form 940.
Make sure that the year entered on the top of Schedule R
matches the year on the attached Form 940.

Client and Employee Information
On Schedule R, including any Continuation Sheets, you must
report the following for each client.
Note: When entering amounts over 999.99 on Schedule R, don’t
enter commas.
Column a. Your client’s EIN.
Column b. The state abbreviation of the client’s location.
Column c (CPEO use only). Type of wages, tips, and other
compensation. Enter a code to report the type of wages, tips,
and other compensation paid to the individual(s) performing
services for the client. If you paid more than one type of wages,
tips, or other compensation, you must use more than one line to
report for that client and enter the applicable code for each line.
The following four codes are the only entries that can be made
in column c.
• A: Wages, tips, and other compensation paid under section
3511(a).
• B: Wages, tips, and other compensation paid under section
3511(c).
• C: Wages, tips, and other compensation not reported under
code A or code B paid as a payor under a service
agreement described in Regulations section 31.3504-2(b)(2).
• D: Wages, tips, and other compensation paid as an agent
under Regulations section 31.3504-1.
Column d. Total taxable FUTA wages allocated to the listed
client EIN from Form 940, line 7.
Column e. Total adjustments to FUTA tax allocated to the listed
client EIN from Form 940, line 9 or line 10.
Column f. Credit reduction amount allocated to the listed client
EIN from Form 940, line 11.
Column g. Total FUTA tax after adjustments allocated to the
listed client EIN from Form 940, line 12.
Column h. Total FUTA tax deposits from Form 940, line 13, plus
any other payments allocated to the listed client EIN.
You must also report the same information for your
employees on Schedule R, line 18.
Compare the total of each column on Schedule R, line 19,
including your information from Schedule R, line 18, to the
amounts reported on the aggregate Form 940. For each column
total, the relevant line from Form 940 is noted in the column
heading.
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
submitting Form 940 and Schedule R.
Paperwork Reduction Act Notice. We ask for the information
on Schedule R to carry out the Internal Revenue laws of the
United States. You’re required to give us the information. We
need it to ensure that you are complying with these laws and to
allow us to figure and collect the right amount of tax. You’re not
required to provide the information requested on a form that is
subject to the Paperwork Reduction Act unless the form
displays a valid OMB control number. Books or records relating
to a form or its instructions must be retained as long as their
contents may become material in the administration of any
Internal Revenue law. Generally, tax returns and return
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.