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

Form 940 and 941 Filing Made Easy with TaxBandits!

It's essential to fully understand your tax responsibilities with these forms to avoid penalties or owing money to the IRS.

Filling out forms 940 and 941 can feel difficult, but you don't have to deal with that stress anymore. Let TaxBandits simplify the process for you!

TaxBandits offers built-in features to automate your filing process, ensure error-free submissions with internal checks, and provide multiple payment options for your tax payments.

TaxBandits supports all the required forms, including 940 Schedule A, 941 Schedule B, 8453-EMP & 8974, to be attached with your 940 and 941 filing.

TaxBandits Automation Suite

Federal Tax Filing

State Tax Filing

W-9 Manager

Payroll

Tax Extension

Nonprofit Tax Filing

TIN Matching

Postal Mailing

EFTPS

Tax Notices

Solutions

Business Owners

Enterprises

Developers

Withholding Agents

Tax Professionals

Aggregate Filers

Reporting Agents

Electronic Return Originator

Standard Features

Pro Features

No Code Integrations

Sage

Karbon

VMS

CSV

QuickBooks

Xero

FreshBooks

ZohoBooks

Zapier

No Code Integrations

Sage

Karbon

VMS

CSV

QuickBooks

Xero

FreshBooks

ZohoBooks

Zapier

TaxBandits Resource Hub

Knowledge base

Blogs

Webinars

Resource Center

Videos

Events

Customer Stories

Contact us

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

Related Topics

What is the difference between 940 and 941?

Form 940 and 941 Filing Made Easy with TaxBandits!

Time is running out to file 1099, W-2 & 94x forms

The IRS deadline has passed—but you can still file 1099s, W-2s, and 94x forms to avoid further penalties.

Time Is Running Out to File Your 1099, W2, & 94x Forms