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

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.

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 IRS Form 940?
A: Employers who paid at least $1,500 in wages during any calendar quarter 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 need to file Form 940.

Q: What is FUTA tax?
A: The Federal Unemployment Tax Act (FUTA) imposes a tax on employers to fund unemployment compensation.

Q: What information is required to complete Form 940?
A: To complete Form 940, you will need information about your payroll, such as total wages paid, unemployment tax payments made, and any adjustments or credits.

Q: When is the deadline to file Form 940?
A: Form 940 is generally due by January 31st of the following year. If you deposited all FUTA tax when it was due, you have until February 10th to file.

Q: Can Form 940 be filed electronically?
A: Yes, Form 940 can be filed electronically using the IRS e-file system.

Q: What happens if I don't file Form 940?
A: If you don't file Form 940 or pay the required FUTA tax, you may be subject to penalties and interest.

Q: Can I amend Form 940?
A: Yes, if you made an error or need to make changes to your original Form 940, you can file an amended return using Form 940-X.