This Schedule R Form 940 guide explains the IRS Allocation Schedule for Aggregate Form 940 Filers. Schedule R for Form 940 allocates aggregate return information to the employers or clients identified under the applicable filing arrangement. It is not a general schedule for every employer with several workers. The client identifying information and allocated amounts must reconcile to the aggregate return.
Reviewed October 31, 2026. This is an independent guide. The version and availability information below identifies the IRS documents used for this page.
What Schedule R Form 940 does and who prepares it
An authorized aggregate filer allocates the annual FUTA return information among the clients covered by the schedule.
For the connected reporting route, see Form 940. Keep the role of that document separate from the task explained on this page.
| Official form | Form 940 (Schedule R) |
|---|---|
| IRS title | Allocation Schedule for Aggregate Form 940 Filers |
| Guide period | the applicable reporting period |
| Target version | Dec 2024 |
| Availability | Current IRS catalog PDF |
| Last checked | October 31, 2026 |
Get the Schedule R Form 940 PDF and check its status
Use the IRS source to confirm the document before completing a real filing. The download link is a reference to the official file; it is not a statement that every copy inside the PDF may be printed and submitted. Follow any instructions about electronic filing, scannable copies, recipient copies or attachments.
Which version of Schedule R Form 940 should you use?
This form follows a revision or continuing-use format rather than a new title for every calendar year. Check the revision printed on the document and the period requested inside it. A revision date, transaction date and tax year are different pieces of information. The current document should be read with the instructions that apply to the actual transaction or return.
Records to gather for Schedule R Form 940
- Aggregate filing authorization.
- Client employer identification.
- Client-level FUTA records.
- Allocation worksheets.
- Aggregate return totals.
Keep a working reconciliation with these records. It should show the source of each reported item, any correction made before filing and the reason a different amount appears on a connected form. This is especially useful when a statement is corrected or a prior-year balance continues into the current calculation.
How to work through Schedule R Form 940
- Confirm applicability. Start with the purpose, filer category and version of the form. Complete any eligibility or applicability question before spending time on the numerical calculation.
- Prepare the source workpapers. Gather the records listed below and reconcile their totals. Keep prior-year balances, current-year transactions and estimated payments separate where they serve different purposes.
- Complete dependent calculations first. When a line refers to another form, schedule or worksheet, finish that supporting calculation first. Preserve any classification, limitation and carryforward information.
- Follow the line sequence. Use the actual line labels and arithmetic in the applicable form. A line number from an older version may refer to something different after a revision.
- Reconcile the filing package. Check names, identifying numbers, tax periods, totals and required attachments. Then use the filing method, signature process and deadline that apply to this filer and form.
Form-specific IRS instructions and reporting details
The following points retain the operative wording of the IRS documents linked above. Read each point with its stated conditions and the applicable form version. References to another form or section describe a connected requirement; they do not mean that every reader must file every referenced document.
Make entries on Form 940 as follows to enable accurate scanning and processing. • Make sure your business name and EIN are on every page of the form and any attachments. • If you type or use a computer to fill out your form, use a 12-point Courier font, if possible. Portable Document Format (PDF) forms on IRS.gov have fillable fields with acceptable font specifications. • Don’t enter dollar signs and decimal points. Commas are optional.
Enter dollars to the left of the preprinted decimal point and cents to the right of it. • You may choose to round your amounts to the nearest dollar, instead of reporting cents on this form. If you choose to round, you must round all entries. To round, drop the amounts under 50 cents and increase the amounts from 50 to 99 cents to the next dollar. For example, $1.49 becomes $1.00 and $2.50 becomes $3.00.
If you use two or more amounts to figure an entry on the form, use cents to figure the answer and round the answer only. • If you have a line with the value of zero, leave it blank.
Additional reporting conditions
Enter your EIN, name, and address in the spaces provided. You must enter your name and EIN here and on page 2. Enter the business (legal) name that you used when you applied for your EIN on Form SS-4. For example, if you’re a sole proprietor, enter “Ronald Smith” on the Name line and “Ron’s Cycles” on the Trade Name line. Leave the Trade Name line blank if it is the same as your Name.
If you pay a tax preparer to fill out Form 940, make sure the preparer shows your business name exactly as it appeared when you applied for your EIN.
Calculations and supporting information
Aggregate Return Filers Only If you’re filing an aggregate Form 940, check the appropriate box to identify yourself. An aggregate Form 940 is a return that combines amounts from multiple clients or customers (employers) onto a single Form 940. Section 3504 Agent. Check this box if you’re a section 3504 agent filing an aggregate Form 940 as an agent of home care service recipients. You must attach Schedule R (Form 940) to your aggregate Form 940. For more information about section 3504 agents, see Aggregate Form 940 filers, earlier, and section 16 of Pub. 15.
Certified Professional Employer Organization (CPEO). Check this box if you’re a CPEO filing an aggregate Form 940 on behalf of your customers. You must attach Schedule R (Form 940) to your aggregate Form 940. For more information about CPEOs, see Certification program for professional employer organizations (PEOs), earlier, and section 16 of Pub.15. Other Third Party. If you’re filing an aggregate Form 940 but you’re not a section 3504 agent or a CPEO, you must check this box. For example, a non-certified PEO filing an aggregate Form 940 must check this box.
Exceptions and related reporting
You may leave lines 1a and 1b blank only if all of the wages you paid to all employees in all states were excluded from state unemployment tax. If you leave lines 1a and 1b blank, and line 7 is more than zero, you must complete line 9 because all of the taxable FUTA wages you paid were excluded from state unemployment tax. Identify the state(s) where you were required to pay state unemployment taxes. 1a. One state only.
Enter the two-letter USPS abbreviation for the state where you were required to pay your state unemployment tax on line 1a. For a list of state abbreviations, see the Schedule A (Form 940) instructions or go to the website for the U.S. Postal Service at USPS.com. 1b. More than one state (you’re a multi-state employer). Check the box on line 1b. Then, fill out Schedule A (Form 940) and attach it to your Form 940.
23 Subtotals for clients. Add lines 1 through 22. Include the subtotals from line 23 on Schedule R (Form 940), line 17.
Further form details
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 the IRS website for more information.
Further form details
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 the IRS website 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.
Reading the lines and boxes
These selected labels come from the linked target PDF. They are a reading aid, not a replacement for the full line instructions or a completed calculation. Match the label and document version before transferring any amount.
| Line or box | Label in the source form | What to check |
|---|---|---|
| 16 | Subtotals for clients. Add all | Follow the stated arithmetic and line references in sequence. Complete the referenced inputs first and retain the worksheet supporting the result. |
| 17 | Enter the combined subtotal | Follow the stated arithmetic and line references in sequence. Complete the referenced inputs first and retain the worksheet supporting the result. |
| 18 | Enter Form 940 amounts for | Check the applicable line instructions and keep the source workpaper with the return records. Transfer only the information that matches the field and reporting period. |
| 19 | Totals. Add lines 16, 17, and | Follow the stated arithmetic and line references in sequence. Complete the referenced inputs first and retain the worksheet supporting the result. |
| 23 | Subtotals for clients. Add lines | Follow the stated arithmetic and line references in sequence. Complete the referenced inputs first and retain the worksheet supporting the result. |
A practical example
An aggregate filer prepares the annual return for authorized clients. It checks each client identifying detail and FUTA allocation before reconciling the schedule with the total return.
This example illustrates the order of the review. It does not assume an unverified deduction, exemption, treaty rate or final tax amount. The applicable form instructions and the actual records determine the result.
Common mistakes to avoid with Schedule R Form 940
- Confirm the authority for aggregate filing.
- Reconcile every allocation with the aggregate totals.
- Do not use a client schedule to conceal an unresolved payroll difference.
Questions about Schedule R Form 940
Does receiving or downloading this form mean I must file it?
An authorized aggregate filer allocates the annual FUTA return information among the clients covered by the schedule. The form purpose and the applicable filing or furnishing conditions determine the action. Downloading a blank PDF does not itself create a filing obligation or establish eligibility for a tax benefit.
Is the revision date always the same as the tax year?
No. Some forms show a tax year, while continuing-use forms show a revision date and ask separately for the reporting period. Check the actual document and instructions. Do not relabel a payment or transaction solely because it was reported in a later calendar year.
What should I do if the underlying information is wrong?
Confirm the authority for aggregate filing. Keep the original record and the correction trail. The issuer correction process, an amended return and an updated certificate can be different procedures. Choose the process that matches the document and the actual error.
Which records should I keep with the completed form?
Retain the source documents, applicable worksheets, submitted version and filing or furnishing confirmations. For this form, the working file should include aggregate filing authorization, client employer identification, client-level FUTA records. Keep continuing balances and prior-year support for as long as they remain relevant under the applicable recordkeeping rules.
Related forms and next steps
Use these guides when the connected issue applies to your records. Each page has its own purpose, reporting year and availability status.