What is a Form 940?

Form 940 is an annual report filed by employers to pay and report their federal unemployment taxes. It is important to note that federal unemployment taxes are not deducted from employee pay, but rather are paid and reported on Form 940.

Who needs to file Form 940?

Employers with employees are required to pay unemployment taxes using this form. The federal unemployment tax, coupled with the state unemployment tax, is used to compensate unemployed workers who have been laid off due to no fault of their own and are actively searching for work.

How do I send Form 940?

If you owe unemployment taxes, payment must be made to the IRS. To file Form 940, you may mail it directly to the IRS or use an online third-party. Ensure that you check the location for mailing your return carefully before sending it to avoid any confusion.

Employers who file Form 940 without payment should check the IRS website for updated mailing addresses depending on their location and the time of year during which the return is being filed. If filing with payment, it is recommended to also check the IRS website for this information.

Employers may file Form 940 online using a third-party provider. The IRS provides information on authorized e-file providers that employers could choose from to file their business taxes. Filing through third-party providers may require payment of a fee.

What is the deadline for filing Form 940?

The deadline for filing Form 940 is January 31 annually for the previous year. If this date falls on a weekend, the form will be due the next business day. Employers who have already deposited their Federal Unemployment Taxes will have 10 additional days to file.

To amend an IRS Form 940 from previous years, file the appropriate form from that year to file an amended return. 

Although both are used for employer payroll taxes, it is important to differentiate between Form 940 and Form 941. Form 940 is used to file annual federal unemployment taxes while Form 941 is used to report quarterly payroll taxes, including Medicare, Social Security, and federal income tax. Both forms are used for reporting employer taxes and are required by the IRS.