Form 940 vs 941 | What is the difference between 940 and 941

What is the difference between 940 and 941?

Form 940 is used to report FUTA taxes, while Form 941 is used to report federal income tax withheld, Social Security, and Medicare tax withholding.

Check out the table below to find the key differences between 940 and 941.

	Form 940	Form 941
Purpose	Form 940 deals exclusively with the Federal Unemployment Tax (FUTA), which is not withheld from employees' wages. Employers pay FUTA tax based on the wages they pay to employees.	Form 941 reports payroll taxes, which include federal income tax withholding, Social Security tax, and Medicare tax. These taxes are withheld from employees' wages and are also matched and paid by employers.
Due Date	Due Annually (January 31)	Due Quarterly (April 30, July 31, October 31 and January 31)
Tax rates	The FUTA tax rate is 6.0%, which applies to the first $7,000 paid to each employee as wages during the year.	The Social Security rate is 6.2% for employers & employees respectively. The Medicare tax rate is 1.45% for employers & employees, respectively.
Who is Liable	FUTA tax is only paid by the employer; it is not withheld from the employee's wages	Both employee and employer contribute to FICA tax
Deposit Requirements	If your FUTA tax liability is $500 or less, carry it over to the next quarter. If your FUTA tax liability is $500 or more, deposit the entire amount at the end of the quarter by the last day of the first month that follows the end of the quarter.	If your total taxes are less than $2,500, you can deposit them when you file Form 941 for the quarter. If your total taxes are more than $2,500, you should deposit taxes according to your deposit schedule, i.e., either monthly or semiweekly. Learn more

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940 vs 941: What is the difference between Form 940 and 941

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