Get the free Form 940

This form is used by employers to report their annual Federal Unemployment (FUTA) tax liability and to determine the amount due or refundable for the tax year.

How to fill out form 940

How to fill out Form 940

1. Gather your financial records, including payroll data, to determine total wages subject to federal unemployment tax.
2. Obtain a copy of Form 940 from the IRS website or through your tax software.
3. Enter your business information at the top of the form, including your employer identification number (EIN).
4. In Part 1, report the total wages subject to FUTA (Federal Unemployment Tax Act) in the appropriate field.
5. Calculate the tax due based on your total wages and enter this amount in Part 2.
6. Complete Part 3 if you have made any adjustments to your tax liability, such as credits for state unemployment taxes paid.
7. Review the form for accuracy, ensuring that all fields are filled out correctly and that calculations are correct.
8. Sign and date the form in the designated area.
9. File Form 940 with the IRS by the due date, either electronically or by mailing it to the appropriate address.

Who needs Form 940?

1. Employers who pay wages of $1,500 or more in any calendar quarter during the year.
2. Employers who had at least one employee for at least a day in any 20 or more weeks throughout the year.
3. Certain organizations that are liable for federal unemployment taxes.

People Also Ask about

What is the difference between form 940 and 941?

Form 940 deals exclusively with the Federal Unemployment Tax (FUTA), which is not withheld from employees' wages. Employers pay FUTA tax based on the wages they pay to employees. Form 941 reports payroll taxes, which include federal income tax withholding, Social Security tax, and Medicare tax.

What is the purpose of a 940 form?

Use Form 940 to report your annual Federal Unemployment Tax Act (FUTA) tax. Together with state unemployment tax systems, the FUTA tax provides funds for paying unemployment compensation to workers who have lost their jobs. Most employers pay both a federal and a state unemployment tax. Only employers pay FUTA tax.

Is 940 annual or quarterly?

Your 940 tax form is due at the end of January, following the year wages were paid. For 2024, the Form 940 due date is January 31, 2025. This form is filed annually, even though tax payments may have to be made quarterly.

What is the 940 form used for?

Use Form 940 to report your annual Federal Unemployment Tax Act (FUTA) tax. Together with state unemployment tax systems, the FUTA tax provides funds for paying unemployment compensation to workers who have lost their jobs. Most employers pay both a federal and a state unemployment tax. Only employers pay FUTA tax.

What is a 941 form used for?

Employers use Form 941 to: Report income taxes, Social Security tax, or Medicare tax withheld from employee's paychecks. Pay the employer's portion of Social Security or Medicare tax.

Do nonprofits file 940 or 941?

501(c)(3) nonprofits are exempt from FUTA, so no Form 940 should be filed. If your nonprofit is tax-exempt under a 501(c)(4), 501(c)(6), or some other 501(c) code section, your nonprofit is NOT exempt from FUTA, and Form 940 will be required.

Can I print form 940?

To print Form 940 Information can be edited on the IRS Form 940 screen before printing the form. Once the information on this screen is correct, click Print.

For pdfFiller’s FAQs

What is Form 940?

Form 940 is an annual federal tax return used to report unemployment taxes owed by employers to the Internal Revenue Service (IRS).

Who is required to file Form 940?

Employers who paid $1,500 or more in wages in any quarter of the year or had at least one employee for at least one day in any 20 or more weeks in the calendar year are required to file Form 940.

How to fill out Form 940?

To fill out Form 940, employers must gather their total taxable wages, calculate the total unemployment taxes owed, and report that information on the form. Instructions for the form guide the employer through each section.

What is the purpose of Form 940?

The purpose of Form 940 is to report and pay federal unemployment taxes (FUTA), which fund the unemployment insurance program.

What information must be reported on Form 940?

Form 940 requires reporting of total payments to employees, taxable wages, calculations for unemployment taxes owed, and any credits or adjustments for state unemployment taxes paid.