More than 100,000+ Businesses trust TaxBandits for these Amazing Features
Schedule A (Form 940)
TaxBandits helps to file Schedule A (Form 940) easily with TaxBandits and transmit it directly to the IRS to report your unemployment tax payment or credit reduction information.
94x Online Signature PIN
The IRS requires you to sign your form with an Online Signature PIN when filing your Form 940. Simply apply a FREE Online Signature PIN with TaxBandits.
If you don't have an Online Signature PIN, don't worry! You can always use Form 8453-EMP to e-sign your Form 940 through TaxBandits.
Prior-Year Tax Filing
TaxBandits support Form 940 filing for both the current and previous tax periods. You can file for both tax periods without any additional pricing.
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Excellent Step by Step process and easy to go back and make edits....- Luis Collazo
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Easy and reasonably priced. Great customer service!- Allen Cohen
I’m quite impressed, especially in comparison with other sites from the IRS list I reviewed as well. Well done. Thank you.- Igor Mandryka
Very easy to find my way around, most help features are very good, customer service response has been exceptional for the price point.- Jerry Morris
Work flow makes sense, navigation is easy, customer service is excellent with prompt call backs and thoughtful support.- Michael Morris
What Information is Required to File Form 940 Online?
- 1. Business Details: Name, EIN, and Address
- 2. Total payments to all employees
- 3. Adjustments for state exclusions (if applicable)
- 4. FUTA Tax
- 5. Balance Due or Overpayment
- 6. FUTA liability deposits
Start e-filing your Form 940 with TaxBandits and Get Instant Approval from the IRS.
How to E-File Form 940 Online for 2020 Tax Year with TaxBandits?
Are you ready to prepare your Form 940? Get started with TaxBandits and easily file Form 940 for 2020 tax year or even 2019.
Frequently Asked Questions
What is Federal FUTA Tax Form 940?
Form 940 is the Employer’s Annual Federal Unemployment (FUTA) Tax Return. The FUTA tax provides funds for paying unemployment compensation to workers who have lost their jobs. Only employers pay FUTA tax and it is not deducted from their employees’ wages.
Employers must pay a tax rate of 6% on the first $7000 that each employee makes. If state unemployment taxes (SUTA) can be paid on-time, the FUTA tax can be reduced to 0.6 percent.
What is a Credit Reduction State?
A state that has not repaid money that it borrowed from the federal government to pay unemployment benefits is considered a credit reduction state.
Credit against the federal unemployment tax will be reduced for a state based on the credit reduction rate. Use Schedule A (Form 940) to calculate the credit reduction. For 2020, the U.S. Virgin Islands (USVI) is the only credit reduction state with a Credit reduction percentage of 3.0%.
What are the penalties for not filing Form 940 on time?
Failure to file Form 940 by the deadline will result in a 5% penalty of the tax due. This amount will accrue on a monthly basis until the amount owed is paid in full. The IRS will also penalize you for making a late payment or for not paying the full amount you owe. You will be charged 2-15% of the unpaid tax depending on how many days your payment is late. Learn More
When is Form 940 E-Filing Deadline for 2020 Tax Year?
The due date to file Form 940 is February 1. However, if you deposited all FUTA tax when due, you have until February 10 to file.
Helpful Resource for Form 940
Schedule A (Form 940)
TaxBandits has provided the guide that contains credit reduction information to file form 940. Read this resource article and get to know about Schedule A (Form 940).
Form 940 Penalty
The IRS will impose a penalty if you fail to file form 940 to the IRS or late file or late payment on Form 940.