Form 940 is the federal unemployment tax annual report form. The form first calculates the employer's federal unemployment tax liability, then adjusts for any state unemployment taxes paid, then calculates the unemployment tax due. Finally, the form compares unemployment tax due for the year to the tax already paid. The employer must pay the underpaid tax.
Form 940 must be filed by January 31, for the previous calendar year. If you have not paid your FUTA (unemployment) tax in full for the previous year, you must pay it when you file Form 940.
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