File Form 940 Online
File form 940 online from the comfort of your home. Use E-file workforce payroll to handle all payroll forms.
Understanding 940 Form
941 is a tax form used to report the Federal Unemployment Tax liability of employers. It is important to note that Form 940 tax is for employers only. They can’t deduct it from employees’ salaries.
Where to File Form 940
Form 940 is generally filed through electronic filing using software. Further e-filing is encouraged by the IRS. However, if you plan to file through paper filing, it mainly depends on two factors.
- Your specific state, as the IRS, has a different mailing address for each state.
- Whether you are paying taxes with forms or not. It will affect the payment method.
Heads Up! If your business closes, you file form 940 and also check box D in the top right corner, which alerts the IRS that your business operations are closed and you will no longer send form 940.
Important Instructions for Form 940 Filing
Generally, FUTA form 940 is for employers. If you are an employer and satisfy any of the below mention criteria, you must file the FUTA (Federal Unemployment Tax Act) form:
- You paid $1,500 or more to employees during a quarter of the calendar year.
- Employed one or more employees for at least part of the day in 20 more different weeks in a year.
Quick Note: The type of employment, such as temporary, part-time and full-time time, doesn’t affect FUTA. Also, tax is paid on the first $7,000 of wage you pay to each employee. Above $7,000 aren’t subject to 940 tax.
Form 940 Instructions to File Through E-File Workforce Payroll
E-file Workforce Payroll is a quick and easy way to file your payroll taxes. The software is intuitive, so you don’t need a guide to file through it. Still, there is a quick filing process for your convenience:
- Make your account and log in to E-file Workforce Payroll.
- Select your filing year and form type. In the current scenario, the form type will be 940, and the year will be 2026.
- Once selected, submit, and a new form will appear with all 940 forms required fields.
- Quickly fill and let our system double-check for common errors.
- Fix any mistake that the software suggests, and you are done.
No further steps are required for filing. You can reiterate the process for all other forms.
Key Deadlines to File FUTA Form 940
Tax form 940 is taxed on a quarterly basis. However, it is filed on a yearly basis. Here are key dates to file Form 940:
- 940 Form is e-filed on January 31st every year for taxes of the previous year.
- The deadline is automatically extended for 10 days if FUTA is already paid!
Quick Notes: IRS deadlines are estimates and subject to change. Check the official IRS site for the latest information.
Have Questions?
Simpler than you think!
Your Questions About Form 940
If you are liable to file a 940 form and you don’t do it for any reason without notifying. The IRS can impose penalties on you. These can be:
- Failure to file file (5% of unpaid taxes)
- Failure to pay penalty (0.5% of unpaid taxes)
The IRS can impose interest on unpaid taxes. It means taxes will keep growing until you pay them in full.
Not really, 940 isn’t filed for household employees. They are reported on Schedule H (1040 form).
FUTA tax is 6% on the first $7,000 of each employee’s wage annually. In many cases, employers get a 5.4% credit for state unemployment tax, making it just 0.6%. Furthermore, in some years, states with unpaid federal loans may reduce this credit, raising your FUTA rate.
Payroll items are generally subject to FUTA. However, in some scenarios, FUTA can be reduced if you paid for employee insurance, retirement accounts (401k) and group insurance. Furthermore, some employees are tax-exempt:
- Your parents if they do a service for you and get paid for it.
- Your children below age 21.
- Spouse
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