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This version of the form is not currently in use and is provided for reference only. Download this version of
IRS Form 940
for the current year.
IRS Form 940 Employer's Annual Federal Unemployment (Futa) Tax Return
IRS Form 940 is a U.S. government tax form that employers need to fill out annually. It's used to report the total amount of Federal Unemployment Tax Act (FUTA) taxes that an employer owes. FUTA taxes are used to fund state unemployment agencies and provide unemployment compensation to workers who have lost their jobs. This form is essential for businesses, as it helps the IRS ensure that employers are contributing the appropriate amount to the unemployment funds.
The IRS Form 940, also known as Employer's Annual Federal Unemployment (FUTA) Tax Return, is typically filed by employers in the United States who pay wages of $1,500 or more during any calendar quarter in a given year. In addition, employers who have had one or more employees for at least some part of a day in any 20 or more different weeks in a year are also required to file this form. This form helps the employer to report and pay the Federal Unemployment Tax Act (FUTA) tax. It's important to note that FUTA taxes are solely the responsibility of the employer and it doesn't get deducted from the employee's wages.
FAQ
Q: What is IRS Form 940?
A: The IRS Form 940 is a document used in the USA that employers must file annually to report their Federal Unemployment Tax Act (FUTA) tax. This tax funds unemployment compensation payments to workers who have lost their job.
Q: Who has to fill out IRS Form 940?
A: Employers in the United States who pay wages of $1,500 or more during any calendar quarter, or for those who have one or more individuals working on any day of a week during 20 weeks in a calendar year, must file Form 940.
Q: What is the FUTA tax rate for 2020?
A: In 2020, the FUTA tax rate was 6.0%.
Q: How often do I need to file IRS Form 940?
A: IRS Form 940 needs to be filed annually. Typically, it must be filed by January 31 for the preceding calendar year.
Q: What is the purpose of FUTA tax?
A: The purpose of the Federal Unemployment Tax Act (FUTA) tax is to fund unemployment compensation payments for workers who have lost their jobs.
Q: How can I file an IRS Form 940?
A: IRS Form 940 can be filed either electronically using IRS e-file, or by paper mail if a preprinted form is used. You can also use a tax professional or tax software to assist with filing the form.
Q: How do I calculate the FUTA tax?
A: The FUTA tax is calculated by multiplying the first $7,000 you paid to each employee during the tax year by the FUTA tax rate.
Q: What are the penalties for not filing IRS Form 940?
A: Failure to file IRS Form 940 by the deadline can result in penalties like monetary fines and interest charges. The penalty is usually 5% of the unpaid tax for each month, or part of a month that your return is late, up to 25% of the unpaid tax.
Download IRS Form 940 Employer's Annual Federal Unemployment (Futa) Tax Return
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