940 Sch. R

Allocation Schedule for Aggregate Form 940 Filers

Agency
IRS
Revision
Rev. December 2024
Fillable fields
611
Pages
3
Official source
IRS form page
Checked
October 21, 2026
Fill 940 Sch. R online
Page 1 of form 940 Sch. R

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

Schedule R (Form 940), Allocation Schedule for Aggregate Form 940 Filers, allocates the amounts on an aggregate Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, to each client. Its instructions, printed on the schedule, define a client as a home care service recipient identified on Form 2678, a customer under a contract that meets section 7705(e)(2), or a client under a service agreement described in Regulations section 31.3504-2(b)(2) with a certified professional employer organization (CPEO).

Each line reports one client: its EIN, its state, a wage type code for CPEOs, and its share of taxable FUTA wages, adjustments, credit reduction, FUTA tax and deposits from Form 940. Page 1 has 15 client lines and Continuation Sheets add more.

This page has the December 2024 revision. The PDF can be filled out free in the browser on this page and downloaded without an account.

What's on Schedule R (Form 940)

Header

EIN, name as shown on Form 940, the calendar year (same as Form 940) and the type of filer box: Section 3504 Agent or Certified Professional Employer Organization (CPEO).

Columns (a) to (c): the client

The client's EIN, the state abbreviation from Form 940, line 1a, or Schedule A (Form 940), and a code for the type of wages, tips and other compensation, for CPEO use only.

Columns (d) to (h): allocated amounts

Taxable FUTA wages (Form 940, line 7), adjustments (line 9 or line 10), credit reduction (line 11), FUTA tax after adjustments (line 12) and deposits from line 13 plus any payment made with the return.

Lines 16 to 19: totals

Line 16 subtotals client lines 1 to 15, line 17 brings in line 23 of all Continuation Sheets, line 18 holds the filer's own employees and line 19 totals them. The form says the column totals must match the aggregate Form 940.

Continuation Sheet

Client lines 1 to 22 and a line 23 subtotal that goes on Schedule R (Form 940), line 17.

Instructions page

The PDF carries its own instructions: purpose, who must file, when to file, and what goes in each column.

How to fill out Schedule R (Form 940)

  1. 1

    Business information

    Enter the EIN and business name so they exactly match the attached Form 940, and check one type of filer box.

  2. 2

    Calendar year

    Enter the calendar year of the Form 940. The instructions say to make sure it matches the year on the attached Form 940.

  3. 3

    Columns (a) and (b)

    Enter each client's EIN and the state abbreviation of the client's location. For amounts over 999.99, the instructions say not to enter commas.

  4. 4

    Column (c) codes

    CPEOs enter A for section 3511(a), B for section 3511(c), C for other pay as a payor under a Regulations section 31.3504-2(b)(2) service agreement, or D for pay as an agent under Regulations section 31.3504-1. More than one type means more than one line.

  5. 5

    Columns (d) to (h)

    Enter the client's share of each Form 940 amount named in the column heading, and the same information for the filer's own employees on line 18.

  6. 6

    Check the totals

    Compare each column total on line 19 with the aggregate Form 940. The instructions say a mismatch is an error to correct before submitting Form 940 and Schedule R.

These steps follow the instructions printed on the schedule.

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Where it goes and when

Attach to Form 940

The instructions say to attach Schedule R, including any Continuation Sheets, to the aggregate Form 940.

When to file

With the aggregate Form 940 every year when it is due. The Instructions for Form 940 give February 2, 2026, for the 2025 Form 940, or February 10, 2026, if all FUTA tax was deposited when due.

Paper or electronic

The schedule says agents may file Form 940 and Schedule R electronically or on paper, and CPEOs generally file them electronically, citing Rev. Proc. 2023-18.

More than 15 clients

The schedule says to complete as many Continuation Sheets as necessary.

Related forms

Who completes Schedule R (Form 940)?

  • Section 3504 agents for home care service recipients

    The schedule says Form 2678 must be previously filed and approved by the IRS before filing Schedule R, except for a state or local government agency under Rev. Proc. 2013-39.

  • Certified professional employer organizations

    CPEOs also file aggregate Forms 940. The schedule says becoming a CPEO means applying through the IRS Online Registration System.

  • Clients and customers on each line

    Each line carries one client's EIN and the amounts allocated to it. The form says the term client includes the term customer.

  • Amended aggregate returns

    The Instructions for Form 940 say an amended aggregate Form 940 also carries Schedule R, completed only for employers who have adjustments on the amended return.

The schedule's instructions say it is completed by filers of an aggregate Form 940: agents of home care service recipients approved under section 3504, and CPEOs. It is a payroll filer's schedule, not something an individual or an employee files.

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Questions about Form 940 Sch. R

Who files Schedule R (Form 940)?

Aggregate Form 940 filers. The schedule's instructions name agents of home care service recipients approved under section 3504, and CPEOs.

Who counts as a client?

A home care service recipient identified on Form 2678, a customer under a section 7705(e)(2) contract, or a client under a Regulations section 31.3504-2(b)(2) service agreement with a CPEO.

What codes go in column (c)?

Only A, B, C or D, and the column is for CPEO use only. Each code stands for a type of wages, tips and other compensation described in the instructions.

What if the totals do not match Form 940?

The instructions say there is an error that has to be corrected before submitting Form 940 and Schedule R.

Is it attached to an amended Form 940?

Yes. The Instructions for Form 940 say to attach Schedule R to an amended aggregate Form 940, completed only for employers with adjustments on it.