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Blank IRS 940 PDF Form

The IRS 940 form is an annual report that employers use to report their federal unemployment tax obligations. This form helps the IRS track the unemployment taxes owed by businesses, ensuring compliance with federal regulations. Understanding how to accurately complete the IRS 940 form is essential for every employer, so take the first step by filling it out through the button below.

Article Guide

The IRS 940 form plays a crucial role in the realm of payroll taxes, specifically addressing the federal unemployment tax (FUTA). Employers use this form to report their annual FUTA tax liability, which funds unemployment compensation for workers who have lost their jobs. Each year, businesses must assess their payroll figures to determine the appropriate amount owed, considering the taxable wage base and the applicable tax rate. The form also requires employers to disclose any adjustments for state unemployment taxes, ensuring compliance with both federal and state regulations. Timely and accurate filing is essential, as failure to submit the form can result in penalties and interest on unpaid taxes. Understanding the intricacies of the IRS 940 form is vital for employers to navigate their responsibilities effectively and maintain compliance with tax obligations.

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Form 940 for 2025: Employer’s Annual Federal Unemployment (FUTA) Tax Return	850125
	850125
Department of the Treasury — Internal Revenue Service	OMB No. 1545-0029

Employer identification number

—

(EIN)

Name (not your trade name)

Trade name (if any)

Address

Number	Street			Suite or room number


City			State	ZIP code


Foreign country name		Foreign province/county		Foreign postal code

Read the separate instructions before you complete this form. Please type or print within the boxes.

Type of Return (Check all that apply.)

a. Amended

b. Successor employer

c. No payments to employees in 2025

d. Final: Business closed or stopped paying wages

Aggregate Return Filers Only

Type of filer (check one): Section 3504 Agent

Certified Professional Employer Organization (CPEO)

Other Third Party

Part 1: Tell us about your return. If any line does NOT apply, leave it blank. See instructions before completing Part 1.

1a	If you had to pay state unemployment tax in one state only, enter the state abbreviation .
1b	If you had to pay state unemployment tax in more than one state, you are a multi-state
	employer
2	If you paid wages in a state that is subject to CREDIT REDUCTION

Check here.

Complete Schedule A (Form 940).

Check here.

Complete Schedule A (Form 940).

Part 2: Determine your FUTA tax before adjustments. If any line does NOT apply, leave it blank.

3	Total payments to all employees
4	Payments exempt from FUTA tax		4
	Check all that apply: 4a	Fringe benefits	4c
	4b	Group-term life insurance	4d

5 Total of payments made to each employee in excess of

$7,000 . . . . . . . . . . . . . . . . 5

6 Subtotal (line 4 + line 5 = line 6) . . . . . . . . . .

. . . . . . . . .. .

Retirement/Pension 4e Dependent care

. . . . . . . . . .

Other

7 Total taxable FUTA wages (line 3 – line 6 = line 7). See instructions . . . . . . . . .

8 FUTA tax before adjustments (line 7 x 0.006 = line 8) . . . . . . . . . . . . .

Part 3: Determine your adjustments. If any line does NOT apply, leave it blank.

9	If ALL of the taxable FUTA wages you paid were excluded from state unemployment tax,
9			.
	multiply line 7 by 0.054 (line 7 × 0.054 = line 9). Go to line 12	9	.
10	If SOME of the taxable FUTA wages you paid were excluded from state unemployment tax,
	OR you paid ANY state unemployment tax late (after the due date for filing Form 940),
			.
	complete the worksheet in the instructions. Enter the amount from line 7 of the worksheet . .	10	.

11	If credit reduction applies, enter the total from Schedule A (Form 940)	11	.

Part 4: Determine your FUTA tax and balance due or overpayment. If any line does NOT apply, leave it blank.

12	Total FUTA tax after adjustments (lines 8 + 9 + 10 + 11 = line 12)	12	.

13	FUTA tax deposited for the year, including any overpayment applied from a prior year .	13	.

14Balance due. If line 12 is more than line 13, enter the excess on line 14.

• If line 14 is more than $500, you must deposit your tax.

• If line 14 is $500 or less, you may pay with this return. See instructions . . . .

. . .

15a

Overpayment. If line 13 is more than line 12, enter the difference

15b

Check one:

Apply to

Send a

next return.

refund.

15c

Routing number

15d Type:

Checking

Savings

15e

Account number

You MUST complete both pages of this form and SIGN it.

For Privacy Act and Paperwork Reduction Act Notice, see separate instructions. www.irs.gov/Form940 Cat. No. 11234O

Form 940 (2025) Created 6/2/25

850212

Name (not your trade name)	Employer identification number (EIN)
	–

Part 5: Report your FUTA tax liability by quarter only if line 12 is more than $500. If not, go to Part 6.

16Report the amount of your FUTA tax liability for each quarter; do NOT enter the amount you deposited. If you had no liability for

a quarter, leave the line blank.

16a 1st quarter (January 1 – March 31) . . . . . . . . . 16a.


16b	2nd quarter (April 1 – June 30)	16b	.

16c	3rd quarter (July 1 – September 30)	16c	.

16d	4th quarter (October 1 – December 31)	16d	.

17 Total tax liability for the year (lines 16a + 16b + 16c + 16d = line 17)		17	.	Total must equal line 12.

Part 6: May we speak with your third-party designee?

Do you want to allow an employee, a paid tax preparer, or another person to discuss this return with the IRS? See the instructions for details.

Yes. Designee’s name and phone number

Select a 5-digit personal identification number (PIN) to use when talking to the IRS.

No.

Part 7: Sign here. You MUST complete both pages of this form and SIGN it.

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete, and that no part of any payment made to a state unemployment fund claimed as a credit was, or is to be, deducted from the payments made to employees. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

Sign your name here

Date

/ /

Print your name here

Print your title here

Best daytime phone

Paid Preparer Use Only

Preparer’s name

Preparer’s signature

Firm’s name (or yours if self-employed)

Address

City

State

Check if you are self-employed

PTIN

Date

EIN

Phone

ZIP code

Page 2

Form 940 (2025)

Form 940-V, Payment Voucher

Purpose of Form

Complete Form 940-V if you’re paying your balance due on Form 940 by check or money order. We will use the completed voucher to credit your payment more promptly and accurately, and to improve our service to you.

Making Payments With Form 940

To avoid a penalty, make your payment with your 2025 Form 940 only if your FUTA tax for the fourth quarter (plus any undeposited amounts from earlier quarters) is $500 or less. If your total FUTA tax after adjustments (Form 940, line 12) is more than $500, you must make deposits by electronic funds transfer (EFT). An EFT can be made using the Electronic Federal Tax Payment System (EFTPS), IRS Direct Pay, or your IRS business tax account. Don’t use Form 940-V to make federal tax deposits. You can also pay your balance due by EFT instead of sending Form 940-V. If you pay your balance due by EFT, file your return using the Without a payment address under Where Do You File? in the Instructions for Form 940; don’t file Form 940-V. For more information about EFTPS or to enroll in EFTPS, go to www.eftps.gov. For more information about IRS Direct Pay, go to www.irs.gov/DirectPay. For more information about making an EFT through your IRS business tax account, go to www.irs.gov/BusinessAccount. See When Must You Deposit Your FUTA Tax? in the Instructions for Form 940. Also see sections 11 and 14 of Pub. 15 for more information about deposits.

Use Form 940-V if you’re paying your balance ▲! due on Form 940 by check or money order. CAUTION However, if you pay an amount with Form 940

that should’ve been deposited, you may be subject to a penalty. See Deposit Penalties in section 11 of Pub. 15.

Specific Instructions

Box 1—Employer identification number (EIN). If you don’t have an EIN, you may apply for one online by going to www.irs.gov/EIN. You may also apply for an EIN by faxing or mailing Form SS-4 to the IRS. If you haven’t received your EIN by the due date of Form 940, write “Applied For” and the date you applied in this

entry space.

Box 2—Amount paid. Enter the amount paid with Form 940.

Box 3—Name and address. Enter your name and address as shown on Form 940.

•Enclose your check or money order made payable to “United States Treasury.” Be sure to enter your EIN, “Form 940,” and “2025” on your check or money order. Don’t send cash. Don’t staple Form 940-V or your payment to Form 940 (or to each other).

•Detach Form 940-V and send it with your payment and Form 940 to the address provided in the Instructions for Form 940.

Note: You must also complete the entity information above Part 1 on Form 940.

Detach Here and Mail With Your Payment and Form 940.

Form 940-V

Department of the Treasury

Internal Revenue Service

1Enter your employer identification number (EIN).

–

Payment Voucher

Don’t staple or attach this voucher to your payment.

2Enter the amount of your payment.

Make your check or money order payable to “United States Treasury.”

OMB No. 1545-0029

2025

Dollars	Cents

3Enter your business name (individual name if sole proprietor). Enter your address.

Enter your city, state, and ZIP code; or your city, foreign country name, foreign province/county, and foreign postal code.

➤ PDF File

Form Specifications

Fact Name	Details
Purpose	The IRS 940 form is used to report annual Federal Unemployment Tax Act (FUTA) taxes.
Filing Deadline	The form must be filed by January 31st of the following year for the previous tax year.
Eligibility	Employers who pay $1,500 or more in wages in any calendar quarter must file this form.
Tax Rate	The standard FUTA tax rate is 6.0% on the first $7,000 of each employee's wages.
State-Specific Forms	Employers may also need to file state unemployment tax forms, which vary by state.
Governing Laws	State unemployment tax laws govern the state-specific forms, which can differ significantly.
Penalties	Failure to file the IRS 940 on time may result in penalties and interest on unpaid taxes.
Amendments	If errors occur, employers can amend the form by filing IRS Form 940-X.

IRS 940: Usage Guidelines

Filling out the IRS 940 form is an important task for employers to ensure compliance with federal unemployment tax requirements. After completing the form, you will need to submit it to the IRS by the due date to avoid penalties.

Obtain a copy of the IRS 940 form. This can be downloaded from the IRS website or requested from your tax professional.
Enter your employer identification number (EIN) at the top of the form.
Fill in your business name and address in the designated fields.
Indicate the year for which you are filing the form.
Complete Part 1 by reporting the total payments made to employees during the year.
In Part 2, calculate the amount of federal unemployment tax you owe based on your total payments.
Fill out Part 3 if you had any adjustments to make for the year.
Sign and date the form at the bottom. Ensure that the signature is from an authorized individual.
Make a copy of the completed form for your records.
Submit the form to the IRS by the due date, either electronically or by mail.

Your Questions, Answered

What is the IRS 940 form?

The IRS 940 form, officially known as the Employer's Annual Federal Unemployment (FUTA) Tax Return, is used by employers to report their annual federal unemployment tax liability. This form helps the IRS track the amount of unemployment tax owed and ensures compliance with federal unemployment tax laws.

Who needs to file Form 940?

Employers who pay wages to employees and are subject to the Federal Unemployment Tax Act (FUTA) must file Form 940. If your business had a total payroll of $1,500 or more in any calendar quarter during the year, or if you employed at least one employee for some part of a day in any 20 or more weeks during the year, you are required to file this form.

When is Form 940 due?

Form 940 is due annually by January 31 of the following year. If you deposited all your FUTA tax on time, you may have until February 10 to file the form. It’s important to keep track of these deadlines to avoid penalties and interest on late payments.

How do I fill out Form 940?

To fill out Form 940, you will need to provide information about your business, including your employer identification number (EIN), total wages paid, and any adjustments for state unemployment taxes. The form includes sections for calculating your FUTA tax liability and reporting any credits for state unemployment taxes paid. It is advisable to refer to the instructions provided by the IRS for detailed guidance.

What if I don’t owe any FUTA tax?

Even if you don’t owe any FUTA tax, you are still required to file Form 940. This ensures that the IRS has a record of your business’s unemployment tax status. If you had no employees or did not meet the filing requirements, you can indicate this on the form.

What are the penalties for not filing Form 940?

Failing to file Form 940 on time can result in penalties. The IRS may impose a penalty of 5% of the unpaid tax for each month the form is late, up to a maximum of 25%. Additionally, interest may accrue on any unpaid taxes. Timely filing is essential to avoid these consequences.

Can I file Form 940 electronically?

Yes, you can file Form 940 electronically using the IRS e-file system or through various tax preparation software programs. Electronic filing is often faster and more secure than paper filing, and it can help ensure that your form is submitted correctly.

Common mistakes

Incorrect Employer Identification Number (EIN): Many individuals mistakenly enter an incorrect EIN. This number is crucial for identifying the business. Double-checking this number can prevent delays and complications.
Misreporting Wages: Some filers fail to accurately report the total wages paid to employees. This error can lead to underpayment of taxes or additional penalties. Ensure all figures are correct and reflect the total taxable wages.
Omitting State Unemployment Taxes: It is common for individuals to forget to include state unemployment taxes in their calculations. These taxes can affect the overall amount owed. Review state requirements carefully to ensure compliance.
Missing Signatures: A simple yet critical mistake is neglecting to sign the form. Without a signature, the IRS may consider the submission invalid. Always verify that all necessary signatures are included before submission.

Documents used along the form

The IRS 940 form is essential for employers to report annual unemployment taxes. However, several other forms and documents often accompany it to ensure compliance with tax regulations and proper record-keeping. Below is a list of common documents that you may need to consider when filing your IRS 940 form.

IRS Form 941: This form is used to report quarterly federal payroll taxes, including income tax withheld and both the employer and employee portions of Social Security and Medicare taxes.
IRS Form W-2: Employers use this form to report wages paid to employees and the taxes withheld from those wages. It must be provided to employees by January 31 each year.
IRS Form W-3: This is a summary form that accompanies the W-2 forms when submitted to the IRS. It provides a total of all W-2s issued by an employer for the year.
IRS Form 1099: Used to report various types of income other than wages, salaries, and tips, this form is essential for independent contractors and freelancers.
IRS Form 940 Schedule A: This schedule is used to report any state unemployment tax credits claimed, which can reduce the federal unemployment tax liability.
State Unemployment Tax Forms: Each state has its own forms for reporting unemployment taxes. These forms vary by state and must be filed in addition to the IRS 940.
Payroll Records: Detailed records of employee hours worked, wages paid, and taxes withheld are crucial for accurate reporting and compliance.
Employee Records: Maintaining comprehensive records for each employee, including hiring documents and tax forms, helps ensure compliance with labor laws and tax regulations.
IRS Form 8822: This form is used to notify the IRS of a change of address for your business, ensuring that all tax documents are sent to the correct location.
Form 1040: While primarily an individual income tax return, self-employed individuals may need to reference this form when calculating their overall tax obligations.

Being aware of these forms and documents can help streamline your filing process and ensure that you meet all necessary requirements. Keeping accurate records and understanding your obligations will contribute to a smoother experience when dealing with taxes.

Similar forms

The IRS Form 940 is essential for employers as it is used to report annual Federal Unemployment Tax Act (FUTA) taxes. Understanding similar forms can help employers navigate their tax responsibilities more effectively. Here are five documents that share similarities with Form 940:

IRS Form 941: This form is used to report quarterly federal payroll taxes. Like Form 940, it helps employers keep track of their tax obligations related to employee wages, but it focuses on Social Security and Medicare taxes in addition to income tax withholding.
IRS Form 944: This form is designed for smaller employers to report annual payroll taxes instead of quarterly. It simplifies the reporting process for those with lower payroll tax liabilities, similar to how Form 940 consolidates unemployment tax reporting on an annual basis.
IRS Form W-2: This document reports an employee's annual wages and the taxes withheld from their paychecks. While Form 940 focuses on unemployment taxes, both forms are critical for ensuring accurate reporting of tax liabilities related to employment.
IRS Form W-3: This form serves as a summary of all W-2 forms issued by an employer. It is submitted to the Social Security Administration and complements the information reported on Form W-2, just as Form 940 summarizes unemployment tax obligations for the year.
IRS Form 1099-MISC: Used to report miscellaneous income, this form is similar in that it deals with tax reporting for payments made to non-employees. Both forms are essential for accurate tax reporting, though they pertain to different types of income and tax obligations.

Dos and Don'ts

When completing the IRS 940 form, it is essential to follow certain guidelines to ensure accuracy and compliance. Below is a list of things to do and avoid during the process.

Things to Do:

Review the instructions carefully to understand the requirements.
Double-check all figures for accuracy before submission.
Ensure that you are using the correct tax year for the form.
Provide all necessary information, including your Employer Identification Number (EIN).
File the form on time to avoid penalties.

Things to Avoid:

Do not leave any fields blank; incomplete forms may be rejected.
Avoid using incorrect or outdated forms.
Do not forget to sign and date the form before submitting.
Refrain from making mathematical errors; use a calculator if necessary.
Do not ignore state requirements that may apply in addition to federal regulations.

Misconceptions

The IRS Form 940 is essential for employers to report their annual Federal Unemployment Tax Act (FUTA) taxes. However, several misconceptions exist about this form. Below are some common misunderstandings.

Form 940 is only for large businesses. Many small businesses also need to file this form if they meet certain criteria, such as having employees who are subject to unemployment tax.
Only for-profit companies must file Form 940. Nonprofit organizations that pay unemployment taxes are also required to file this form.
Form 940 is filed monthly. In reality, this form is filed annually, summarizing the total FUTA taxes owed for the year.
Filing Form 940 is optional. Employers must file this form if they owe FUTA taxes, regardless of the amount.
Form 940 is the same as Form 941. These forms serve different purposes; Form 941 is for reporting income taxes, Social Security, and Medicare taxes withheld from employees.
Filing Form 940 guarantees a refund. While overpayments can result in refunds, filing does not automatically ensure one will be received.
All employers must pay FUTA tax. Some employers, like those with a small number of employees or certain types of organizations, may be exempt from FUTA tax.
Filing Form 940 is a simple process. While it may seem straightforward, errors can lead to penalties. Employers should take care to complete it accurately.

Understanding these misconceptions can help employers navigate their responsibilities regarding unemployment taxes more effectively.

Key takeaways

The IRS Form 940 is essential for employers to report their annual Federal Unemployment Tax Act (FUTA) liability. Understanding how to fill it out correctly is crucial for compliance and avoiding penalties. Here are key takeaways regarding the form:

Purpose: The form is used to report and pay unemployment taxes to the federal government.
Filing Frequency: It must be filed annually, typically by January 31 of the following year.
Eligibility: Employers who pay wages of $1,500 or more in any calendar quarter or have at least one employee for part of a day in any 20 or more weeks must file this form.
Tax Rate: The FUTA tax rate is currently 6.0% on the first $7,000 of an employee's wages, but credits may apply.
State Credits: Employers can receive a credit of up to 5.4% for state unemployment taxes paid, reducing the effective FUTA rate.
Record Keeping: Maintain accurate payroll records to support the information reported on the form.
Filing Methods: The form can be filed electronically or via mail, depending on the employer's preference.
Penalties: Failure to file on time or incorrect reporting can result in penalties and interest charges.

Understanding these key aspects of the IRS Form 940 can help ensure compliance and facilitate smoother tax processes for employers.