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The Form 940 is used for reporting annual Federal Unemployment Tax Act (FUTA) tax.
Employers who paid wages of $1,500 or more in any calendar quarter in the current or previous year, or had one or more employees for at least some part of a day in any 20 or more different weeks in the current or previous year, are required to file Form 940.
Employers must provide information about their business, number of employees, total wages paid, FUTA tax owed, and any credits claimed.
The purpose of Form 940 is to report and pay unemployment taxes to the federal government to fund unemployment benefits for workers who have lost their jobs.
Information such as employer identification number (EIN), total number of employees, total wages paid, FUTA tax owed, and any credits claimed must be reported on Form 940.
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