Dealing with the Sage 50 940 Form Filing Error when trying to submit your payroll tax forms electronically can be incredibly frustrating. This common error prevents users from successfully sending their 940 paperwork to state and federal agencies through the Sage 50 accounting platform. By following a few troubleshooting tips, you can get to the bottom of the issue and Sage 50 940 filing working properly again.

Pinpointing the Exact Error Message

With Sage 50 payroll software, there are a few variants of the 940 form filing error that can appear. The first step is determining the exact wording of the error message you receive when trying to electronically submit the forms. Some examples include:

  • Unable to connect to electronic filing service
  • Missing or invalid data for Form 940
  • Form validation error

Make note of the precise language of the error. This will help you and Sage support determine what is causing the problem.

Checking Your Payroll Tax Profiles

Payroll tax profiles in Sage 50 contain all the critical information needed for accurately filing forms like the federal 940. Errors or outdated data in these profiles is the most common culprit behind Sage 50 e-file errors.

Inside Sage 50, carefully review your payroll tax data fields, especially:

  • Federal and State Tax ID Numbers
  • Unemployment ID Number
  • Contact addresses

Correct any inaccuracies you find, like expired tax IDs. Make sure all fields are fully filled out. Update old addresses or contact info. Then try filing the 940 again.

Enabling Sage eFiling Services

Assuming your payroll tax profiles check out, another potential cause of the Sage 50 940 error is disabled or improperly configured electronic filing services in the software.

Go to the Electronic Filing section within Sage 50 and make sure eFiling is toggled On and reflecting an Active status. Also enter your valid PIN code and registration key if prompted.

Activating these critical electronic services can quickly resolve problems submitting the 940 through Sage 50.

Also Read: Quickly Fix Sage 50 File System Error Number 3- File. DAT

Eliminating Missing Employee Data Issues

Sage 50 cross-checks the employee payroll data you submit on tax forms like the 940. If certain employee detail information is missing or incomplete, it often triggers the Sage 50 940 error on attempts to file electronically.

Check that key details on each employee is accounted for, like hire dates, termination dates, pay rates, SSN numbers, etc. Entering any missing info can allow the forms to now validate successfully.

Leveraging Sage Direct Deposit

If you are still receiving the error message despite accurate profiles, enabled services, and complete employee data, try switching to Sage Direct Deposit for filing your 940 paperwork.

Sage Direct integrating seamlessly with Sage 50 often avoids e-file errors that arise from compatibility issues with third-party filing services. Enable Direct Deposit in the Sage 50 electronic filing settings instead.

Calling In an Sage Payroll Tax Expert

At a certain point, getting Sage 940 e-filing working again requires specialized expertise and troubleshooting capabilities. Consider calling in an Sage Payroll Tax specialist to take over.

These professionals have intimate knowledge of Sage 50’s electronic filing component specifically and commonly resolve persistent Sage 940 errors that typical support avenues cannot.

Preventing Future Sage 940 Errors

Once resolved, take proactive measures moving forward to ensure Sage 940 filing problems don’t become an annual headache:

  • Set reminders to validate your tax ID data
  • Always install the latest Sage payroll updates
  • Audit employee profiles quarterly for missing information
  • Test filing a form outside of peak windows

Keeping payroll data polished and software updated makes a big difference in minimizing Sage 940 form filing hassles down the road.


Getting hit with the notorious Sage 50 940 Form Filing Error every year-end during tax season can quickly become a morale-killing, hair-pulling nuisance. While the specific technical trigger behind the error varies, correcting misconfigured payroll tax profiles, incomplete employee records, and outdated software often resolves the problem. Relying on specialist guidance from sage support teams finally gets Sage 940 efiling working properly again. Implementing better validation and testing practices helps avoid repeat issues in the coming tax year. sage contact support.