Get the free Form 940

This form is used by employers to report their annual Federal Unemployment Tax Act (FUTA) tax liability, which is based on wages paid to employees. It needs to be filed by employers who pay wages

How to fill out form 940

How to fill out Form 940

1. Gather required information: Obtain your business name, address, and Employer Identification Number (EIN).
2. Identify the tax year: Specify the calendar year for which you are filing.
3. Calculate your total payments: Sum up all the wages subject to federal unemployment tax.
4. Determine taxable wages: Identify the amount of wages above the annual threshold for each employee.
5. Calculate your FUTA tax: Multiply the taxable wages by the applicable FUTA tax rate.
6. Claim credits: If applicable, claim any credits for state unemployment taxes paid.
7. Fill out the form: Complete all sections of Form 940 accurately with the gathered information.
8. Review: Double-check your calculations and information for accuracy.
9. Submit the form: Send your completed Form 940 to the IRS by the due date.

Who needs Form 940?

1. Employers who pay wages of $1,500 or more in any calendar quarter.
2. Employers who have one or more employees in any day of the week for at least part of a day during 20 or more weeks in the current or preceding calendar year.
3. Employers required to report and pay 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 report used by employers to report their Federal Unemployment Tax Act (FUTA) liability. It is used to determine the amount of federal unemployment tax owed.

Who is required to file Form 940?

Employers who meet certain criteria, such as paying wages of $1,500 or more in any calendar quarter or having at least one employee for some part of a day in 20 or more weeks during the year, are required to file Form 940.

How to fill out Form 940?

To fill out Form 940, employers need to provide information such as their business name, address, Employer Identification Number (EIN), and the total wages paid, then calculate the total FUTA tax due based on the provided data.

What is the purpose of Form 940?

The purpose of Form 940 is to report the annual federal unemployment tax liability and to ensure compliance with federal unemployment tax laws.

What information must be reported on Form 940?

Form 940 requires reporting the total wages subject to FUTA tax, the total FUTA tax due, any adjustments for overpayments or credits, and the payment amount if applicable.