What is Form 940?
344 views |
Last modified 1/12/2021 2:27:49 AM EST |
Added by ExpressEfile Team
Employers use Form 940 to report the Employer’s Annual Federal Unemployment Tax (FUTA). The FUTA tax helps pay unemployment compensation to workers who have lost their jobs.
Employers pay the FUTA tax without making deductions from employee wages. FUTA taxes are paid quarterly and employers need to report each quarter’s payment in Form 940. Employers are also required to pay any balance due to the IRS while filing Form 940.
An employer’s FUTA tax payment is calculated as 6% of the first $7,000 each of their employees earn. If employers pay their state unemployment taxes (SUTA) on time, the FUTA tax can be lowered to 0.6%.
With ExpressEfile, you can e-file Form 940 easily and securely.