Instructions for IRS Form 940 Employer's Annual Federal Unemployment (Futa) Tax Return

IRS Form 940 Schedule A Multi-State Employer and Credit Reduction Information

This document contains official instructions for IRS Form 940 , Employer's Annual Federal Unemployment (Futa) Tax Return - a tax form released and collected by the Internal Revenue Service (IRS), a subdivision of the U.S. Department of the Treasury. An up-to-date fillable IRS Form 940 Schedule A is available for download through this link.

FAQ

Q: What is IRS Form 940?
A: IRS Form 940 is the Employer's Annual Federal Unemployment (FUTA) Tax Return.

Q: Who needs to file Form 940?
A: Employers who have paid wages of $1,500 or more in a calendar quarter, or who had one or more employees for at least part of a day in any 20 or more different weeks in the current or prior year, need to file Form 940.

Q: When is the deadline to file Form 940?
A: Form 940 is due by January 31st of the year following the year in which the wages were paid.

Q: What is the purpose of Form 940?
A: Form 940 is used to report and pay the employer's share of federal unemployment taxes (FUTA) to the IRS.

Q: How can I file Form 940?
A: You can file Form 940 electronically using the IRS e-file system, or you can mail a paper copy to the mailing address provided in the instructions.

Q: Are there any penalties for late filing?
A: Yes, there are penalties for late filing. The penalty amount depends on the number of days the return is late and the size of the employer's business.

Q: What if I made a mistake on my Form 940?
A: If you made a mistake on your Form 940, you should file an amended return using Form 940X as soon as possible to correct the error.