Form 940Employment Tax
Employer's Annual Federal Unemployment (FUTA) Tax Return
Reports federal unemployment tax. Employers pay 6.0% on first $7,000 of each employee's wages, with up to 5.4% credit for state unemployment tax.
Who Files This Form
Employers who paid $1,500+ in wages in any quarter, or had 1+ employee for 20+ weeks
Due Date
January 31 (or February 10 if all FUTA tax deposited on time)
Important Notes
Effective FUTA rate is typically 0.6% after state credit. Most employers deposit quarterly if liability exceeds $500.
Related Forms
Form 941Form 940 Schedule A
Official IRS Source
Always download the current version and instructions from the IRS website before filing.
Educational Reference Only: This is general information about Form 940, not tax advice. Form instructions change annually. Always download the current version from irs.gov and read the official instructions. Consult a qualified tax professional for your specific situation. Read full disclaimer →