How to File IRS Form 940

Most businesses must file Form 940.

Internal Revenue Service (IRS) Form 940 is the Employer's Annual Federal Unemployment (FUTA) tax return. Combined with any required state unemployment tax, the FUTA tax provides compensation to employees who have lost their jobs and are eligible to collect unemployment benefits. Employees do not contribute to the FUTA tax, and employers only pay this tax on the first $7,000 paid to each employee during the year. You can find Form 940 online at the IRS website.

Things You'll Need

• IRS Form 940

Instructions

1. Determine if your business is required to file Form 940. In general, employers must file the form if they paid wages of more than $1,500 to employees in any quarter during the year, or had one or more employees for some part of the day in 20 or more weeks during the year. However, the guidelines differ for employers of household employees, agricultural employers, Indian tribal governments, tax-exempt organizations and employers of state or local governments.

2. Deposit any outstanding FUTA tax into an authorized financial institution or the Federal Reserve Bank for your area, using IRS Form 8109. Records of your deposits will be sent to the IRS. The FUTA tax must be deposited before you file Form 940.

3. Complete Form 940. To ensure accurate processing, include your business name and Employer Identification Number (EIN) on each page of the form and attachments.

4. File Form 940 before the due date. The filing address varies depending on your state and payment status and can be found on the IRS website.

References

• IRS: Instructions for Form 940
• IRS: General Instructions: Understanding Form 940

Resources

• IRS: Specific Instructions
• IRS: Form 940