When Is Form 940 Due? Filing & Payment Deadlines

Form 940, the Employer’s Annual Federal Unemployment (FUTA) Tax Return, is for businesses with employees. It reports an employer’s annual FUTA tax liability, which funds unemployment benefits for workers who have lost jobs. The FUTA tax is paid solely by the employer and is not withheld from employee wages.

The Annual Filing Deadline for Form 940

The annual due date for filing Form 940 is January 31st of the year following the tax year; for example, to report FUTA taxes for the 2024 tax year, employers must file Form 940 by January 31, 2025. This deadline applies even if a business closed or stopped paying wages during the year, requiring a final return. An extension is available: if all FUTA tax liabilities for the year were deposited on time, the due date extends to February 10th. If any due date falls on a weekend or legal holiday, the deadline shifts to the next business day. This filing deadline is for the annual return, distinct from ongoing FUTA tax payment obligations.

Understanding FUTA Tax Payments

While Form 940 is an annual return, FUTA tax payments are made quarterly. Employers must deposit FUTA tax if their accumulated liability for a quarter exceeds $500. If the FUTA tax liability for a quarter is $500 or less, the amount carries over to the next quarter until the cumulative liability surpasses $500. Once the $500 threshold is met, the tax must be deposited by the last day of the month following the end of that quarter; for example, FUTA tax accumulated for the first quarter (January to March) is due by April 30. These deposits are required through electronic funds transfer (EFT), often via the Electronic Federal Tax Payment System (EFTPS).

Key Information for Completing Form 940

Completing Form 940 requires information from payroll records. Employers need their Employer Identification Number (EIN), business name, and address. Details regarding total payments made to all employees are necessary, including fringe benefits and other compensations subject to FUTA. Employers must also account for payments exempt from FUTA tax, such as certain health coverage payments or contributions to qualified retirement plans. The total FUTA tax liability for the year, calculated on the first $7,000 of wages paid to each employee, and total FUTA tax deposits already made are required. Information regarding state unemployment tax (SUI) contributions paid, including any state-specific credit reductions, is also required to determine the final FUTA tax credit.

Submitting Form 940

Once completed, employers can submit Form 940 to the IRS. Electronic filing (e-file) is the preferred submission method, available through IRS-approved software providers, often requiring an online signature PIN or Form 8453-EMP. For those who do not e-file, paper filing by mail is an option. The correct mailing address depends on the employer’s location and whether a payment is enclosed. Consult the latest IRS instructions for Form 940 to confirm the mailing address, and retain a copy of the filed form and all supporting records for future reference.