IRS Form 940: Employer's Annual Federal Unemployment (FUTA) Tax Return
Form 940 is the yearly return employers use to report and pay federal unemployment tax, known as FUTA. It is separate from state unemployment tax, though state payments can affect the amount. Employers often need it alongside their quarterly Form 941 filings.
What this form is for
It figures the federal unemployment tax owed on wages and reconciles deposits for the year.
When people usually use it
Employers file it once a year. It comes up when the IRS sends a notice about a missing or unpaid FUTA return.
What to have ready
- Total wages paid during the year
- State unemployment tax records
- FUTA deposits made
Notices that mention it
- IRS Notice CP14: Balance due
- IRS Notice CP504: Notice of intent to levy
Related forms
- Form 941: Employer's Quarterly Federal Tax Return
- Form W-2: Wage and Tax Statement
- Form SS-4: Application for Employer Identification Number (EIN)
Read the IRS page
IRS.gov page for Form 940 (opens in a new tab). The IRS page is the final word on this form.
Frequently asked questions
What is IRS Form 940?
Form 940 is the yearly return employers use to report and pay federal unemployment tax, known as FUTA. It is separate from state unemployment tax, though state payments can affect the amount. Employers often need it alongside their quarterly Form 941 filings.
Where do I get Form 940?
The current version and instructions are on the IRS page for Form 940 at https://www.irs.gov/forms-pubs/about-form-940. Download it there so you have the right revision.
Do I need to file Form 940?
It depends on your situation. Read the IRS page and the instructions, and if a letter mentioned Form 940, read what that letter asks for. OweRight does not give tax advice.
What should I have ready for Form 940?
A good starting list is: total wages paid during the year; state unemployment tax records; futa deposits made. The instructions on IRS.gov list everything the form asks for.
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OweRight is not the IRS and does not give tax or legal advice.