BanditAI
IRS Form 940 (sp) Online for Accurate FUTA Tax Reporting
TaxBandits, an IRS-authorized e-file provider, helps you prepare and
e-file Form 940 (sp) to report your annual federal unemployment taxes
through a guided filing process.
No hidden charges
Save & finish later
IRS-Authorized
Trusted software with 99.3% IRS acceptance rate
File Form 940 (sp) in 10 Minutes
Prepare and e-file with ease & accuracy
Backed by The Bandit Commitment
Error checks, no-cost amendments & retransmissions
$1 Million Tax Protection™
Professional assistance for IRS notices or audits
4.9
52,784 Reviews
1M+
Businesses served
<10 min
Avg. Filing Time
99.3%
IRS Acceptance Rate
24/7
Live customer support
YOUR ANNUAL FUTA TAX FILING, MADE CLEAR
E-file Form 940 (sp) for Businesses and Tax Professionals
Your Form 940 (sp) Filing, Step by Step
TaxBandits helps you complete your annual FUTA tax return with guided preparation, built-in reviews, and electronic filing options.
Guided Form Preparation
Complete Form 940 (sp) with step-by-step guidance and validation checks.
Flexible Ways to Pay
Review available payment options for your Form 940 (sp) balance due, including supported electronic payment methods.
Review Checks Before Filing
Identify missing details, EIN discrepancies, and potential wage calculation errors before submitting your return.
Retransmit Without Extra Fee
Correct eligible rejected returns and retransmit them without additional retransmission charges.
10
min
Average time to complete and file
"Filing Form 940 was quick and straightforward. I was able to review my information and complete the filing in under 10 minutes, saving valuable time during tax season."
Nitin M — Business Owner
New Berlin, WI
Simplify Form 940 (sp) Filing for Your Clients
TaxBandits gives tax professionals, reporting agents, EROs, and payroll providers the features to handle multiple client returns through one workflow.
Bulk Import Options
Import employer and wage information using supported Excel templates or APIs.
Client Review and E-Sign
Allow clients to review and sign returns through your branded portal.
Organized Team Workflow
Assign preparation and approval responsibilities to team members.
Faster Signature Collection
Send multiple e-sign requests to simplify client authorization.
898
returns
Successfully processed in a single upload
"Easy to use, internal audit functions help prevent mistakes and typos and are very cost-effective. Filing returns is a stressful exercise. Your prompts and information make it easy and much less stressful. Thanks"
Mimi, CPA
Montebello, NY
Manage Form 940 (sp) Filings Across Multiple Entities
From multi-entity businesses to CPEOs and Section 3504 agents, TaxBandits helps you manage multiple EINs through one filing workflow.
Bulk Data Import
Upload employer and wage data in batches to reduce manual entry.
API Integration
Connect your systems to supported filing and status-tracking workflows.
Schedule R Support
Prepare Schedule R for eligible aggregate Form 940 returns.
Built-In Reconciliation
Review FUTA-taxable wages, state unemployment tax credits, and tax calculations before filing.
13,000+
Clients managed efficiently with scalable API integration
"TaxBandits has made it much easier for us to manage Schedule R filings for over 13,000 clients. The API integration worked well with our internal system, and being able to assign team roles helped us stay organized and in control throughout the process. The platform is straightforward to use, and their team has been responsive whenever we had questions or needed help."
Sean Duffy, Senior Vice President
KINGWOOD, TX
Your Form 940 (sp) Filing, Step by Step
TaxBandits helps you complete your annual FUTA tax return with guided preparation, built-in reviews, and electronic filing options.
Guided Form Preparation
Complete Form 940 (sp) with step-by-step guidance and validation checks.
Flexible Ways to Pay
Review available payment options for your Form 940 (sp) balance due, including supported electronic payment methods.
Review Checks Before Filing
Identify missing details, EIN discrepancies, and potential wage calculation errors before submitting your return.
Retransmit Without Extra Fee
Correct eligible rejected returns and retransmit them without additional retransmission charges.
10
min
Average time to complete and file
"Filing Form 940 was quick and straightforward. I was able to review my information and complete the filing in under 10 minutes, saving valuable time during tax season."
Nitin M — Business Owner
New Berlin, WI
Simplify Form 940 (sp) Filing for Your Clients
TaxBandits gives tax professionals, reporting agents, EROs, and payroll providers the features to handle multiple client returns through one workflow.
Bulk Import Options
Import employer and wage information using supported Excel templates or APIs.
Client Review and E-Sign
Allow clients to review and sign returns through your branded portal.
Organized Team Workflow
Assign preparation and approval responsibilities to team members.
Faster Signature Collection
Send multiple e-sign requests to simplify client authorization.
100%
Guaranteed accuracy
"As a CPA formerly in public practice, now working for a local city government, TaxBandits is a great and simple application for filing 941, 940, and 1099s. I am thankful to have found it."
Joel Wright
Montebello, NY
Manage Form 940 (sp) Filings Across Multiple Entities
From multi-entity businesses to CPEOs and Section 3504 agents, TaxBandits helps you manage multiple EINs through one filing workflow.
Bulk Data Import
Upload employer and wage data in batches to reduce manual entry.
API Integration
Connect your systems to supported filing and status-tracking workflows.
Schedule R Support
Prepare Schedule R for eligible aggregate Form 940 returns.
Built-In Reconciliation
Review FUTA-taxable wages, state unemployment tax credits, and tax calculations before filing.
13,000+
Clients managed efficiently with scalable API integration
"TaxBandits has made it much easier for us to manage Schedule R filings for over 13,000 clients. The API integration worked well with our internal system, and being able to assign team roles helped us stay organized and in control throughout the process. The platform is straightforward to use, and their team has been responsive whenever we had questions or needed help."
Sean Duffy, Senior Vice President
KINGWOOD, TX
Why TaxBandits?
Everything You Need to File Form 940 (sp)
Form 940 Schedule A Included
Report multi-state employment and credit reductions using 940 Schedule A at no extra cost. Reuse data from previous filings.
State Payroll Filing Support
Manage supported state withholding, unemployment insurance, and new hire reporting alongside your federal filing needs.
Attachments Included
Required forms Schedule A (Form 940 sp), Form 8974, and 941-V are included automatically with your filing at no extra cost.
Flexible Signing Options
Sign using an Online Signature PIN or Form 8453-EMP. Need a PIN? Request one for free.
Built-In Error Checks
Identify missing information, EIN mismatches, and potential tax calculation errors before submitting your return.
Amendments at No Extra Cost
Correct eligible filing errors and submit Form 940 Amendment without additional amendment filing fees.
24/7 AI and Live Support
Get step-by-step filing guidance from Bandit AI or contact the support team whenever you need assistance.
Real-Time Filing Status
Track your Form 940 sp submissions and check IRS acceptance or rejection updates to resolve issues promptly.
Every feature is designed to make annual FUTA reporting more manageable, from preparation through submission.
What Makes TaxBandits the
Best Software to File Form 940 (sp) Online
99.3%
IRS Acceptance Rate
$0
Zero Hidden Fees:
Retransmissions and Corrections
100%
Guaranteed Accuracy
24/7
AI and Live Support
Stay compliant with filing made exclusively for Puerto Rico employers
HEAR FROM OUR CLIENTS
What Business Owners Say
Trusted by millions of businesses and tax professionals for seamless tax filings!
How to File Form 940 (sp) Electronically with TaxBandits?
Create your free account and follow these simple steps to e-file Form 940 (sp) effortlessly.
Enter Form Data
Enter Manually
Excel Import
Schedule A
API Import
- Enter total payments and FUTA liability
- Attach Schedule A for multi-state or credit reduction wages
- Import with the Excel template or API
Check for errors & file
Your 940
Review
Sign
Transmit
- Check for errors, get AI assistance
- Sign using 8453-EMP or 94x Online PIN
- File Form 940 (sp) to the IRS
Beyond Filing
Status Updates
Retransmission
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Corrections (940-sp)
Notice Management
$1M Audit Defense
- Free retransmission of rejected returns
- IRS notice support
- Audit defense protection
Ready to Get Started with 940 (sp) E-Filing Through TaxBandits?
Watch how to E-file Form 940 (sp)
E-File Form 940 (sp) Online With Transparent Pricing and No Hidden Fees
Easier 940 (sp) filing with year-round support. No additional fees, no surprise charges.
Included in Every Filing
-
All required attachments (Schedule A, 8453-EMP,
940-V) - Free retransmission of rejected returns
- No-cost corrections
- $1 Million Tax Protection
Complete 94x Bundle
Year-round compliance with purchase
$26.77 $29.75
- Form 941 (4 nos)
- Form 940 (1 no)
- Retransmission and corrections
- $1 Million Tax Protection
941-Only Bundle
For businesses that file 941 only
$21.42 $23.80
- Form 941 (4 nos)
- Retransmission and corrections
- $1 Million Tax Protection
Included in Every Filing
- All required attachments (Schedule A, 8453-EMP, 940-V)
- Free retransmission of rejected returns
- No-cost corrections
- $1 Million Tax Protection
Complete 94x Bundle
Year-round compliance with purchase
$26.77 $29.75
- Form 941 (4 nos)
- Form 940 (1 no)
- Retransmission and corrections
- $1 Million Tax Protection
941-Only Bundle
For businesses that file 941 only
$21.42 $23.80
- Form 941 (4 nos)
- Retransmission and corrections
- $1 Million Tax Protection
Don't pay until you are ready to e-file Form 940 (sp). Start for free.
The Bandit Commitment
Ensuring peace of mind for every
940 Filing.
Filing Form 940 (sp) is about more than submitting it to the IRS. It’s about accuracy, compliance, and getting it right.
The Bandit Commitment helps you identify errors, make corrections, and retransmit when needed. We support you throughout the filing process and beyond.
-
Getting the right data in
Compliance begins with clean, validated data—long before you start preparing your 940 return.
-
Simple, guided filing
Navigate every step with clear instructions, real-time AI chatbot assistance, and expert support.
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Free corrections & retransmissions
Corrections & retransmissions for your 940 are included with your filing fee.
-
Money-back guarantee
We do whatever it takes to get your 940 return accepted. If not, your filing fee can be refunded.
Never Worry About IRS Notices, Letters, or Audits
TaxBandits has partnered with Protection Plus to provide end-to-end tax protection for Form 940 filings.
$1 Million Tax Protection™
Focus on running your business while Protection Plus helps handle IRS notices, inquiries, or audits related to your Form 940 filings. This program provides up to $1M in services to assist in reaching a resolution.
Expert Guidance for IRS Notices and Representation
Get help reviewing and responding to IRS notices related to Form 940. Credentialed tax professionals may assist with IRS communications and represent your organization before
the IRS.
Frequently Asked Questions
Form 940 (sp) is the Federal Unemployment Tax Act (FUTA) form. FUTA provides funds to pay unemployment compensation for workers who lose their jobs. Only employers pay FUTA; they do not deduct FUTA from employee wages. The employer must pay a 6% tax rate on the first $7,000 each employee earns. If state unemployment taxes (SUTA) are paid on time, the FUTA tax can be effectively reduced to 0.6 percent.
The deadline to electronically submit Form 940 (sp) is February 01, 2026.
Employers must pay Federal Unemployment Tax Act (FUTA) tax on eligible employee wages. You are generally required to pay FUTA tax if you meet any of the following conditions:
General Employers
- You paid $1,500 or more in wages to employees during any calendar quarter in 2025 or 2026.
- You had one or more employees for at least part of a day in 20 or more different weeks in 2025 or 2026.
Household Employers
- You paid $1,000 or more in cash wages to household employees during any calendar quarter in 2025 or 2026.
Agricultural Employers
- You paid $20,000 or more in cash wages to farmworkers during any calendar quarter in 2025 or 2026.
- You employed 10 or more farmworkers for at least part of a day during 20 or more different weeks in 2025 or 2026.
The following employers are generally exempt from FUTA tax under IRS rules:
- Federally Recognized Tribal Governments: Eligible tribal governments that comply with applicable state unemployment laws.
- Tax-Exempt Charitable Organizations: Organizations exempt under Section 501(c)(3) of the Internal Revenue Code.
- State and Local Governments: State governments and their political subdivisions or instrumentalities.
These exemptions have specific conditions. Other tax-exempt nonprofits are not automatically exempt from FUTA tax.
A Credit Reduction State is a state that has not yet repaid the money it borrowed from the federal government to pay unemployment benefits.
The federal unemployment tax credit will be reduced for a state based on the credit reduction rate. Use Schedule A (Form 940 (sp) to calculate the credit reduction.
If you don't file Form 940 (sp) by the due date, a penalty of 5% of the tax due will be applied. This amount will accrue monthly until the amount due is paid in full. The IRS will also penalize you for late payment or for not paying the full amount due. You will be charged 2-15% of the unpaid tax, depending on how many days late you are. Learn More
Ready to E-File 940 (sp) Online?
Join millions of successful businesses and tax professionals.
