E-File Form 940 Online - Accurate & IRS-Authorized FUTA Tax Filing

Employers generally must file Form 940 if they meet either of these conditions:

• Paid $1,500 or more in wages during any calendar quarter.
• Had at least one employee working for part of a day in 20 or more different weeks during the year.

Special rules apply to household, agricultural, and certain other employers.

The IRS may update Form 940 to reflect tax law and reporting changes. Employers should check the current year's instructions for:

• FUTA credit reduction states.
• Changes to taxable compensation and exclusions.
• Updated filing and payment requirements.

Check out our latest article to know more about the changes to Form 940.

If you paid no wages during the year, you may not owe FUTA tax. However, your filing obligation depends on your circumstances.

• If you have an existing filing requirement, follow the IRS instructions for reporting no FUTA liability.
• If you permanently closed your business, indicate that the return is final when applicable.

Gather the following information before filing:

• Business name, EIN, and address.
• Total annual wages and FUTA-taxable wages.
• Exempt payments and applicable wage adjustments.
• State unemployment tax contributions.
• FUTA deposits made during the year.
• Schedule A details, if applicable.

Employers generally must file Schedule A (Form 940) if they:

• Paid FUTA-taxable wages in multiple states.
• Paid wages in a state subject to a FUTA credit reduction.

Schedule A helps calculate applicable state credits and additional FUTA tax. Click here to learn more about the 940 filing requirements of a multi-state employer.

The research payroll tax credit is claimed against eligible employer Social Security and Medicare taxes, not FUTA tax reported on Form 940.

To claim it:

1. Complete Form 6765 and make the required election.
2. Verify that your business meets the eligibility requirements.
3. Complete Form 8974 to calculate the available credit.
4. Report the credit on Form 941 as instructed.

Form 940 is generally due January 31 of the following year.

If you deposited all FUTA taxes on time, you generally receive an additional 10 days to file.

Yes, Form 940 can be filed electronically with the IRS. The IRS encourages electronic filing as it is secure, accurate, and reduces the IRS processing time.

Failing to file or pay FUTA tax on time may result in:

• Late-filing and late-payment penalties.
• Failure-to-deposit penalties.
• Interest on unpaid taxes.
• IRS collection notices or action.

You can generally pay your Form 940 balance using:

• EFTPS or another applicable IRS electronic payment service.
• Electronic funds withdrawal through supported e-file software.
• Credit or debit card through an authorized processor.
• Check or money order, if permitted by the IRS instructions.

Filing Form 940 for different years online is primarily done through the IRS Modernized e-File (MeF) system via authorized third-party software providers like TaxBandits.

The IRS does not provide a direct online portal for employers to file Form 940 themselves; you must use authorized software that has been approved by the IRS for e-filing Form 940.

With TaxBandits, you can file Form 940 for the current tax year and up to two prior tax years. E-File Now

Failure to file Form 940 by the deadline will result in a 5% penalty on the tax due. This amount will accrue every month 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.

Get more detailed information about Form 940 penalties for not filing or not paying the taxes.