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IRS Form 940 is used to report the employer's annual federal unemployment tax liability.
Employers who paid wages of $1,500 or more during any calendar quarter or had at least one employee for at least part of a day in any 20 or more different weeks during the year must file IRS Form 940.
You can fill out IRS Form 940 by providing information about your business, the amount of wages subject to federal unemployment tax, and any adjustments or credits that apply.
The purpose of IRS Form 940 is to calculate and report the employer's Federal Unemployment Tax Act (FUTA) tax liability.
Information such as employer identification number, taxable wages, and any adjustments or credits must be reported on IRS Form 940.
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