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Form 940 - Employer's Annual Federal Unemployment (FUTA) Tax Return

What's New for 2011?

The IRS has created a page on IRS.gov for information about Form 940, at www.irs.gov/form940. Information about any future developments affecting Form 940 (such as legislation enacted after initial release) will be posted on that page.

The FUTA tax rate was 6.2% from January 1, 2011, through June 30, 2011 (quarters 1 and 2), and decreased to 6.0% July 1, 2011 through December 31, 2011 (quarters 3 and 4).

You must deposit all depository taxes (such as employment tax, excise tax, and corporate income tax) electronically using the Electronic Federal Tax Payment System (EFTPS). For more information about EFTPS or to enroll in EFTPS, visit the EFTPS website at www.eftps.gov, or call 1-800-555-4477. You can also get Pub. 966, The Secure Way to Pay Your Federal Taxes.

A state that has not repaid money it borrowed from the federal government to pay unemployment benefits is a "credit reduction state." The Department of Labor determines these states. If an employer pays wages that are subject to the unemployment tax laws of a credit reduction state, that employer must pay additional federal unemployment tax when filing its Form 940.

For 2011, there are credit reduction states. If you paid any wages that are subject to the unemployment compensation laws of any of these states, you are not allowed the credit reduction rate (i.e., .003 or .006) of the regular .054 credit for the tax. For more information, see the Specific Instructions of Schedule A (Form 940).

What to Report on Form 940

Form 940 is used to report annual Federal Unemployment Tax Act (FUTA) tax. Together with state unemployment tax systems, the FUTA tax provides funds for paying unemployment compensation to workers who have lost their jobs. Most employers pay both a federal and a state unemployment tax. Only employers pay FUTA tax. FUTA tax should not be deducted or collected from employees' wages.

Due Dates

To Internal Revenue Service: January 31*

*If date shown falls on a Saturday, Sunday or legal holiday, the due date is the next business day.

Where to File Form 940

Where you file depends on whether you include a payment with your return. If you are located in:

Connecticut, Delaware, District of Columbia, Georgia, Illinois, Indiana, Kentucky, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, South Carolina, Tennessee, Vermont, Virginia, West Virginia, Wisconsin

Without a Payment Filing Address:

Department of the Treasury
Internal Revenue Service
Cincinnati, OH 45999-0046

With a Payment Filing Address:

Internal Revenue Service
P.O. Box 804521
Cincinnati, OH 45280-4521

If you are located in:

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Florida, Hawaii, Idaho, Iowa, Kansas, Louisiana, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Washington, Wyoming, or are a tax-exempt organization, Federal, State or Local Government, or Indian Tribal Government

Without a Payment Filing Address:

Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0046

With a Payment Filing Address:

Internal Revenue Service
P.O. Box 105078
Atlanta, GA 30348-5078

If the location of your legal residence, principal place of business, office, or agency is outside the United States, see the form instructions.

Where To E-File Form 940

WinFiler

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IRS Specific Form 940 Instructions

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