Form detail
IRS Form 940
Employer's Annual Federal Unemployment (FUTA) Tax Return
Country
United States
Revision year
2024
Methods
paper, efile
Updated
2026-05-20
Employer's Annual Federal Unemployment (FUTA) Tax Return
Annual return reporting federal unemployment tax under FUTA.
Who must file: Employers who paid wages of $1,500 or more in any quarter of the current or prior year, or had at least one employee for 20 or more weeks in the current or prior year.
Practical overview
Form 940 is annual but FUTA deposits are made quarterly when liability exceeds $500. The base FUTA rate is 6.0 percent on the first $7,000 of wages, reduced by a credit of up to 5.4 percent for state unemployment payments. Credit-reduction states have a partial offset reduction that increases effective FUTA liability for employers in those states.
Practical steps
- Determine FUTA wages for each employee (first $7,000 of wages).
- Track quarterly liability and deposit when accumulated liability exceeds $500.
- Apply credit-reduction adjustments for states with outstanding federal loans.
- File Form 940 by January 31 of the following year.
Due-date notes
January 31 of the year following the tax year; February 10 if all deposits were paid timely.
Timing: January 31
Penalty snapshot
Failure-to-deposit and failure-to-file penalties apply on the standard payroll-tax schedule.
Related forms
Related guides
Related citations
Computed from the cross-reference graph. Links open the related entity on this site.
This entry cites
- FormIRS 941
Cited by
- FormIRS 941
Primary sources
- About Form 940Verified 2026-05-20
- Instructions for Form 940Verified 2026-05-20
Important disclaimer
This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.