Form 940

Free Form 940

Utilize our complimentary 940 form to report your Federal Unemployment Tax Act (FUTA) tax payments for the year 2023, whether they've been paid or are pending.

Employers required to report Federal Unemployment Tax Act (FUTA) tax payments made during the calendar year should use Form 940.

Table of Contents

Understanding Form 940: Reporting Federal and State Unemployment Taxes

Form 940 is a crucial IRS document used by employers to report federal and state unemployment taxes for their businesses. Under the Federal Unemployment Tax Act (FUTA), employers are required to contribute to the unemployment insurance fund, which helps provide financial support to individuals who have lost their jobs.

This form calculates the FUTA tax owed by taking into account various factors, including:

  1. The location(s) of your business.
  1. Your quarterly tax liability is determined based on the number of employees you have.
  1. Any state unemployment tax you've paid during the year, for which you may receive a tax credit.
  1. The total and adjusted FUTA tax amount you owe.

Completing Form 940 accurately and submitting it on time is essential to fulfill your tax obligations as an employer and ensure that your employees can access unemployment benefits when needed. Keep in mind that failure to comply with these tax requirements can result in penalties and fines from the IRS. Therefore, it's essential to understand and properly manage your Form 940 obligations as part of your overall business tax responsibilities.

Filing Requirements for Form 940: Who Needs to File?

To determine if you need to file Form 940, consider the following criteria:

  1. If you paid $1,500 or more to employees during any calendar quarter of the year (e.g., January to March), you are required to pay the Federal Unemployment Tax Act (FUTA) tax and file Form 940.
  1. If you had at least one employee who worked any part of a day for 20 or more different weeks throughout the tax year, you must also file Form 940.

Benefits of Using Our 940 Form Builder

Utilizing our 940 Form Builder offers several advantages:

  1. Simplified Language: Our builder employs straightforward language to assist you with the complex calculations required for each section of Form 940. This simplifies the process of determining what information you need to report.
  1. Error Prevention: By using our builder, you can prevent both overpaid fees and underpaid Federal Unemployment Tax Act (FUTA) tax. Our user-friendly questions and prompts ensure that you won't face penalties due to calculation errors.

Filing Deadline for 940 Forms

The deadline for submitting your Form 940 for the current tax year is January 31, 2023. If you've consistently made all your Federal Unemployment Tax Act (FUTA) tax payments on time, you have the option to file by February 10, 2023. For added convenience and efficiency, the IRS encourages electronic filing of the form.

Distinguishing Form 940 from Form 941

Form 940 and Form 941, although both utilized by employers, serve distinct purposes. Form 940 is employed to report unemployment tax, while Form 941 is specifically designed for reporting taxes withheld from employee wages, including Social Security tax and Medicare tax.

Sample For Form 940

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Related Employer Tax Forms Contracts
  • 4506-T Form : Use our free 4506-T form to request a transcript of your past tax returns (for up to 3 years before the current tax year).
  • Form W-2 : Utilize our complimentary W-2 form to furnish your employees with a comprehensive record of their income and deductions throughout the tax year.
  • Form 8829 : Utilize our 8829 form to claim deductions for home office expenses on your Schedule C (Form 1040).
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