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How to File 940 Electronically with TaxBandits for 2023 Tax Year?

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Choose Tax Year

Choose the Form 940 from the dashboard and select the tax year for which you need to file your 940.

Enter the Employer Details

Enter Federal, Medicare, and Social Security taxes,etc.

Enter FUTA Tax Information

Enter all the necessary information such as Tax Liability, deposit schedule and others.

Choose IRS Payment Method

Choose your preferred payment method, we support payment such as EFW, EFTPS, Credit Card, Check, or money order.

Review Your Form 940

Review the Form summary and make necessary changes if needed.

Transmit Your Form 940 to the IRS

After completing, review and transmit your return to the IRS.

Are you ready to e-file form 940?

Get started with TaxBandits and easily File Form 940 Online for 2023 Tax Year.

What Information is Required to File Form 940 Online?

TaxBandits for Every Business IRS Form 940 for 2023
  • 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 instructions, you can easily fill out Form 940 for the 2023, 2022, 2021 & 2020 Tax Years. Start to e-file 940 with TaxBandits and Get Instant Approval from the IRS.

Benefits of Form 940 Filing with TaxBandits

Schedule A (Form 940)

Schedule A (Form 940)

To report your unemployment tax payment or credit reduction information you should file 940 Schedule A along with Form 940. You can file it easily with TaxBandits

94x Online Signature PIN

94x Online Signature PIN

The IRS requires you to sign your form with an Online Signature PIN when filing 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 940 Form through TaxBandits.

Prior-Year Tax Filing

Prior-Year Tax Filing

TaxBandits support Form 940 filing for both the current and previous tax years without any additional pricing.

Success Starts with TaxBandits!

Frequently Asked Questions on Filing Form 940

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.

Who must file 940?

Generally, Form 940 is filed by employers who meet the following criteria:

  • Paid wages of $1,500 or more to employees during the calendar year.
  • Have a minimum of one employee for at least some part of a day in any 20 or more weeks.

What are the changes to Form 940 for the 2023 Tax Year?

For the 2023 Tax Year, Form 940 has undergone several changes as announced by the IRS. Here are the key changes:

Credit reduction state:

Employers in specific states will experience an increase in Federal Unemployment Tax Act (FUTA) taxes due to credit reduction. The affected states include California (CA), and New York (NY). The credit reduction rate for these states has risen from 0.3% to 0.6%. For employers in the U.S. Virgin Islands (VI), the credit reduction rate is now 3.9%.

Electronic Filing of Amended Form 940:

A significant change is the introduction of electronic filing for amended Form 940. In the past, amendments were limited to paper forms. However, starting in 2024 or sometime during the year, the IRS is planning to implement electronic filing for amended Form 940. This modernization is aimed at improving efficiency and ease of compliance for employers.

New Form 940 (sp) Available in Spanish:

For the tax year 2023, a new version of Form 940 (sp) will be available in Spanish. All employers, including those in Puerto Rico and the U.S. Virgin Islands, now have the option to file the new Form 940 (sp) for the 2023 Tax Year. It's important to note that Form 940-PR is no longer applicable for filing and is effective for tax years beginning after December 31, 2022.

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.

The Form 940 credit reduction rate is as follows:

States 2020 2021 2022 2023
California (CA) - - 0.3% 0.6%
Connecticut (CT) - - 0.3% -
Illinois (IL) - - 0.3% -
New York (NY) - - 0.3% 0.6%
U.S. Virgin Islands (VI) 3.0% 3.3% 3.6% 3.9%

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.

How to File 940 with TaxBandits?

With TaxBandits you can e-file 940 with automatic tax calculations, error checks using the IRS Business Rules, 940 Schedule A, and 8453 EMP. Complete and transmit accurate forms in minutes by following three simple steps!

  • Step 1: Create a free TaxBandits account!

  • Step 2: Choose "Form 940" and enter the details.

  • Step 3: Review and Transmit to the IRS.

When is the deadline to file Form 940 for the 2023 Tax Year?

The due date to file Form 940 is January 31, 2024. However, if you deposited all FUTA tax when due, you have until February 10 to file.

Visit to learn more about the 940 deadlines.

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