How to E-File Form 940 Online for 2022 Tax Year with TaxBandits?

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Choose Tax Year
Enter the Employer Details
Enter FUTA Tax Information
Choose IRS Payment Method
Review Your Form 940
Transmit Your Form 940 to the IRS
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Are you ready to prepare your Form 940?

Get started with TaxBandits and easily file Form 940 for 2022 tax year or even 2022.

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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

With these 940 instruction, you can easily fill out Form 940 for 2022. Start e-filing your Form 940 with TaxBandits and Get Instant Approval from the IRS.

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Schedule A (Form 940)

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

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.

Form 8453-EMP

Form 8453-EMP

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

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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Frequently Asked Questions

What is Annual 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.

Learn more about the IRS Form 940.


What are the Form 940 Credit Reduction States?

A state that has not repaid money that it borrowed from the federal government to pay unemployment benefits is considered a credit reduction state.

For the tax year 2022, the Form 940 credit reduction rate for California, Connecticut, Illinois, and New York is 0.3% and for the U.S. Virgin Islands is 3.6%.


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.

Click here to learn more about the Form 940 Penalty.


When is Form 940 E-Filing Deadline for 2022 Tax Year?

The due date to file Form 940 is January 31, 2023. However, if you deposited all FUTA tax when due, you have until February 10 to file.

Visit https://www.taxbandits.com/payroll-forms/form-940-due-date/ to learn more about the 940 deadlines.


What is the change for the 2021 tax year in Form 940?

As in the 2020 tax year, the Credit reduction state is U.S. Virgin Islands (USVI). But for the 2021 tax year, the credit reduction percentage has been changed to 3.3% (which was 3.0% for the 2020 tax year). Other than this, the Form fields remind the same.

Visit https://www.taxbandits.com/payroll-forms/form-940-irs-changes/ to learn more about the Form 940 credit reduction changes.

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