A Form 940, along with 941/944, are Employer forms. They don't go on a 1040.

This person has a business that is an Employer. The Employer business is supposed to file a business tax return.

An Employee would get a W2.

Paying quarterly taxes would not preclude being an employee.

Are you sure you understand what all of this means to you as the preparer?

This client is the business owner I'm just trying to see where to apply what my client pay to the IRS 

You need to start with the Business. Who is doing the business tax return?

If it is You, which business entity type is this?

If this is a Sole Proprietorship, how many other employees are there? Because you cannot be your own employee and you don't get paid through Payroll, for a Sole Proprietorship. That means this person is not on salary and did not get listed as Payroll Expense when they took money, and is not a name on the 940 and is not included in the 941.

Can you follow all of that and respond with details, please.

If the business is a Schedule C, the gross wages get deducted as wages, and the employer share of payroll taxes get deducted as taxes.