Form 940

What Is Form 940?

Form 940 is a Department of the Treasury Internal Revenue Service form titled Employer’s Annual Federal Unemployment (FUTA) Tax Return. It’s a form used to pay and report federal unemployment taxes. The money received from companies paying FUTA taxes helps compensate unemployed workers that were laid off due to no fault of their own. Only workers actively seeking more work are eligible for unemployment compensation.

Who Needs to File Form 940?

Anyone who’s filed $1,500 or more in wages to employees during a calendar quarter of this year or last year. It’s also applicable if you employed anyone for at least 20 weeks of the year or you normally have employees but didn’t pay them during a specific calendar year.

It’s a tax paid by employers, so naturally, only employers will fill out this form. Therefore it’s not a tax you’d deduct from employee wages.

Typically, it’s due January 31st, but you get a 10-day filing extension if you deposited all FUTA taxes on time throughout the previous year. Small businesses need to file IRS form 940 to avoid any costly penalties.

Where to Mail?

The Internal Revenue Service (IRS) has an aptly titled webpage called “Where to File your Taxes” for Form 940. On it, you’ll find a detailed list of states and corresponding addresses that’ll help you mail your form and payment. There’s also a separate mailing address for mailing returns without payment.

How to File 940 Form Online

You can file online through third parties that are authorized to e-file to the IRS or purchase IRS-approved software. All the information you need can be found on the IRS web page titled E-File Employment Tax Forms.

How to Amend Form 940

Amending Form 940 is as easy as filing the previous year’s form. If you want to amend a 2019 form, you’d look up the 2019 Form 940 and print it. On the form, you’d check the amended return box in the upper right-hand corner of the first page. Next, you’d amend the form with the updated amounts, sign it, and include an explanation for your amendment. Finally, you’d look up the address again on the “Where to File your Taxes” for Form 940 webpage and, if necessary, attach a Schedule R form.


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