IRS Form 940 Due Dates for
2023 & 2022 Tax Year

1. About the Employer’s Annual Federal Unemployment Tax

Form 940 is the Employer’s Annual Federal Unemployment (FUTA) Tax Return. The FUTA tax is collected from employers, not from their employee’s paycheck. This tax applies to the first $7,000 paid to each employee during the calendar year. Employers who have paid wages of $1,500 or more in any calendar quarter during 2021 or 2022 and with one or more employees for at least some part of a day in any 20 or more different weeks in 2021 or 2022. Employers must pay a tax rate of 6% on the first $7,000 of wages that each of their employees makes. If state unemployment taxes (SUTA) was paid on-time, the FUTA tax can be reduced to 0.6 percent.

2. When is the due date to file 940 tax Form?

The Form 940 deadline is based on when the FUTA taxes are deposited. If the FUTA tax liability is more than $500 for the calendar year, then the payments should be deposited at least for one quarter. If the liability is $500 or less in a quarter, it can be carried over to the next quarter.

The following are the due dates for the Form 940 payments:

The due date for filing Form 940 for 2023 is January 31, 2024.

If FUTA taxes were deposited on the correct deadlines, Form 940 isn’t due until February 10, 2024.

3. What are the penalties on Form 940?

The IRS will impose penalties if the payments are made late. This will be increased daily for the amounts that were not properly or timely deposited.

A 2% penalty will be charged if the deposits are made 1 to 5 days late and will increase upto 15% if the amounts are still unpaid more than 10 days after the IRS notice.

These penalties can be avoided if:

• The deposits are paid when it is due
• File Form 940 accurately
• Attach Schedule R (Form 940) if necessary

4. How to file 940 Form for the 2023 tax year?

940 Form can be filed by paper filing or e-filing. IRS suggests e-filing of Form 940 for a better and quick processing. TaxBandits, an IRS Authorized e-file provider helps employers file with the lowest pricing. Before filing, gather the following information: business details, state details, FUTA tax, balance due.