940 ohjetta
Työnantajan vuotuinen työttömyys (FUTA) Tax Return
2023
Liittyvät lomakkeet
- Muoto 940 - Työnantajan vuotuinen liittovaltion työttömyys (FUTA)
Department of the Treasury
Internal Revenue Service
2023
Instructions for Form 940
Employer's Annual Federal Unemployment (FUTA) Tax Return
Section references are to the Internal Revenue Code
unless otherwise noted.
Certification program for professional employer or-
ganizations (PEOs). The Stephen Beck, Jr., Achieving a
Better Life Experience Act of 2014 required the IRS to
establish a voluntary certification program for PEOs.
PEOs handle various payroll administration and tax
reporting responsibilities for their business clients and are
typically paid a fee based on payroll costs. To become and
remain certified under the certification program, certified
professional employer organizations (CPEOs) must meet
various requirements described in sections 3511 and
7705 and related published guidance. Certification as a
CPEO may affect the employment tax liabilities of both the
CPEO and its customers. A CPEO is generally treated for
employment tax purposes as the employer of any
Future Developments
For the latest information about developments related to
Form 940 and its instructions, such as legislation enacted
What's New
Credit reduction state. A state that hasn't repaid money
it borrowed from the federal government to pay
unemployment benefits is called a credit reduction state.
The U.S. 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.
individual who performs services for a customer of the
CPEO and is covered by a contract described in section
7705(e)(2) between the CPEO and the customer (CPEO
contract), but only for wages and other compensation paid
to the individual by the CPEO. To become a CPEO, the
organization must apply through the IRS Online
For 2023, there are credit reduction states. If you paid
any wages that are subject to the unemployment
compensation laws of a credit reduction state, your credit
against federal unemployment tax will be reduced based
on the credit reduction rate for that credit reduction state.
Use Schedule A (Form 940) to figure the credit reduction.
For more information, see the Schedule A (Form 940)
instructions or go to IRS.gov.
New Form 940 (sp) available in Spanish for tax year
2023. All employers, including employers in Puerto Rico
and the U.S. Virgin Islands, have the option to file new
Form 940 (sp) for tax year 2023. Form 940-PR is no longer
available to file for tax years beginning after December 31,
2022.
Registration System. For more information or to apply to
For wages paid to a work site employee, a CPEO is
eligible for the credit for state unemployment tax paid to a
state unemployment fund, whether the CPEO or a
customer of the CPEO made the contribution. In addition,
a CPEO is allowed the additional credit if the CPEO is
permitted, under state law, to collect and remit
contributions to the state unemployment fund with respect
to a work site employee. For more information on the
State Unemployment Fund, later.
CPEOs must generally file Form 940 and Schedule R
(Form 940), Allocation Schedule for Aggregate Form 940
Filers, electronically. For more information about a CPEO’s
requirement to file electronically, see Rev. Proc. 2023-18,
2023-13 I.R.B 605, available at IRS.gov/irb/
Electronically filing an amended Form 940. Beginning
sometime in 2024, the IRS expects to make filing an
amended Form 940 available as part of Modernized e-File
(MeF). Monitor IRS.gov for more information on
availability.
Outsourcing payroll duties. Generally, as an employer,
you're responsible to ensure that tax returns are filed and
deposits and payments are made, even if you contract
with a third party to perform these acts. You remain
responsible if the third party fails to perform any required
action. Before you choose to outsource any of your payroll
and related tax duties (that is, withholding, reporting, and
paying over social security, Medicare, FUTA, and income
taxes) to a third-party payer, such as a payroll service
provider or reporting agent, go to IRS.gov/
Reminders
Moving expense and bicycle commuting reimburse-
ments are subject to FUTA tax. The Tax Cuts and Jobs
Act (P.L. 115-97) suspends the exclusion for qualified
moving expense reimbursements from your employee's
income under section 132 and the deduction from the
employee's income under section 217, as well as the
exclusion for qualified bicycle commuting reimbursements
from your employee's income under section 132,
beginning after 2017 and before 2026. Therefore, moving
expense and bicycle commuting reimbursements aren't
exempt from FUTA tax during this period. Don't include
moving expense or bicycle commuting reimbursements on
Form 940, line 4. For more information about fringe
benefits, see Pub. 15-B.
OutsourcingPayrollDuties for helpful information on this
topic. If a CPEO pays wages and other compensation to
an individual performing services for you, and the services
are covered by a CPEO contract, then the CPEO is
generally treated for employment tax purposes as the
employer, but only for wages and other compensation
Nov 28, 2023
Cat. No. 13660I
paid to the individual by the CPEO. However, with respect
to certain employees covered by a CPEO contract, you
may also be treated as an employer of the employees
and, consequently, may also be liable for federal
employment taxes imposed on wages and other
compensation paid by the CPEO to such employees. For
more information on the different types of third-party payer
arrangements, see section 16 of Pub. 15.
800-555-4477 number above or 800-733-4829. Additional
information about EFTPS is also available in Pub. 966.
Electronic filing and payment. Businesses can enjoy
the benefits of filing and paying their federal taxes
electronically. Whether you rely on a tax professional or
handle your own taxes, the IRS offers you convenient and
secure programs to make filing and paying easier. Spend
less time worrying about taxes and more time running your
business. Use e-file and EFTPS to your benefit.
Aggregate Form 940 filers. Approved section 3504
agents and CPEOs must complete Schedule R (Form
940) when filing an aggregate Form 940. Aggregate
Forms 940 are filed by agents of home care service
recipients approved by the IRS under section 3504. To
request approval to act as an agent for an employer, the
agent files Form 2678 with the IRS unless you’re a state or
local government agency acting as an agent under the
special procedures provided in Rev. Proc. 2013-39,
2013-52 I.R.B. 830, available at IRS.gov/irb/
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information. A fee may be charged to file electronically.
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provided under Federal tax deposits must be made by
electronic funds transfer (EFT), earlier.
Electronic funds withdrawal (EFW). If you file Form
940 electronically, you can e-file and use EFW to pay the
balance due in a single step using tax preparation
software or through a tax professional. However, don't use
EFW to make federal tax deposits. For more information
Credit or debit card payments. You may pay your FUTA
tax shown on line 14 using a credit or debit card. Your
payment will be processed by a payment processor who
will charge a processing fee. Don't use a credit or debit
card to pay taxes that are required to be deposited (see
information on paying your taxes with a credit or debit
Aggregate Forms 940 are also filed by CPEOs
approved by the IRS under section 7705. CPEOs file Form
8973, Certified Professional Employer Organization/
Customer Reporting Agreement, to notify the IRS that they
started or ended a service contract with a customer.
CPEOs must generally file Form 940 and Schedule R
(Form 940) electronically. For more information about a
If you change your business name, business ad-
dress, or responsible party. Notify the IRS immediately
if you change your business name, business address, or
responsible party.
Online payment agreement. You may be eligible to
apply for an installment agreement online if you can't pay
the full amount of tax you owe when you file your return.
later.
Disregarded entities and qualified subchapter S sub-
sidiaries (QSubs). Business entities that are
disregarded as separate from their owner, including
QSubs, are required to withhold and pay employment
taxes and file employment tax returns using the name and
Disregarded entities, later.
Write to the IRS office where you file your returns (using
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later) to notify the IRS of any business name change. See
Pub. 1635 to see if you need to apply for a new employer
identification number (EIN).
Complete and mail Form 8822-B to notify the IRS of a
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business address or responsible party change. Don’t mail
Form 8822-B with your Form 940. For a definition of
“responsible party,” see the Instructions for Form SS-4.
State unemployment information. When you
registered as an employer with your state, the state
assigned you a state reporting number. If you don't have a
state unemployment account and state experience tax
rate, or if you have questions about your state account,
you must contact your state unemployment agency. For a
list of state unemployment agencies, go to the U.S.
Department of Labor's website at oui.doleta.gov/
Photographs of missing children. The IRS is a proud
partner with the National Center for Missing & Exploited
Children® (NCMEC). Photographs of missing children
selected by the Center may appear in instructions on
pages that would otherwise be blank. You can help bring
these children home by looking at the photographs and
calling 1-800-THE-LOST (1-800-843-5678) if you
recognize a child.
Federal tax deposits must be made by electronic
funds transfer (EFT). You must use EFT to make all
federal tax deposits. Generally, an EFT is made using the
Electronic Federal Tax Payment System (EFTPS). If you
don't want to use EFTPS, you can arrange for your tax
professional, financial institution, payroll service, or other
trusted third party to make electronic deposits on your
behalf. Also, you may arrange for your financial institution
to initiate a same-day wire payment on your behalf.
EFTPS is a free service provided by the Department of the
Treasury. Services provided by your tax professional,
financial institution, payroll service, or other third party
may have a fee.
For more information on making federal tax deposits,
see section 11 of Pub. 15. To get more information about
800-555-4477 or 800-244-4829 (Spanish). To contact
EFTPS using Telecommunications Relay Services (TRS)
for people who are deaf, hard of hearing, or have a speech
disability, dial 711 and then provide the TRS assistant the
How Can You Get More Help?
If you want more information about this form, see Pub. 15,
go to IRS.gov, or call the Business and Specialty Tax Line
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Instructions for Form 940 (2023)
toll free at 800-829-4933 or 800-829-4059 (TDD/TTY for
persons who are deaf, hard of hearing, or have a speech
disability), Monday–Friday from 7:00 a.m. to 7:00 p.m.
local time (Alaska and Hawaii follow Pacific time;
employers in Puerto Rico receive service from 8:00 a.m.
to 8:00 p.m. local time).
you paid cash wages of $1,000 or more in any calendar
quarter in 2022 or 2023.
A household employee performs household work in a:
Private home,
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Local college club, or
Local chapter of a college fraternity or sorority.
For a list of related employment tax topics, go to
Generally, employers of household employees must file
Schedule H (Form 1040) instead of Form 940.
However, if you have other employees in addition to
household employees, you can choose to include the
FUTA taxes for your household employees on Form 940
instead of filing Schedule H (Form 1040). If you choose to
include household employees on your Form 940, you
must also file Form 941, Employer's QUARTERLY Federal
Tax Return; Form 943, Employer's Annual Federal Tax
Return for Agricultural Employees; or Form 944,
Employer's ANNUAL Federal Tax Return, to report social
security, Medicare, and any withheld federal income taxes
for your household employees. See Pub. 926 for more
information.
General Instructions
What's the Purpose of Form 940?
These instructions give you some background information
about Form 940. They tell you who must file the form, how
to fill it out line by line, and when and where to file it.
Use Form 940 to report your 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. Don't collect or deduct FUTA tax from your
employees' wages.
For Agricultural Employers . . .
File Form 940 if you answer “Yes” to either of these
questions.
Did you pay cash wages of $20,000 or more to
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farmworkers during any calendar quarter in 2022 or 2023?
The FUTA tax applies to the first $7,000 you pay to
each employee during a calendar year after subtracting
any payments exempt from FUTA tax.
Did you employ 10 or more farmworkers during some
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part of the day (whether or not at the same time) during
any 20 or more different weeks in 2022 or 20 or more
different weeks in 2023?
Who Must File Form 940?
Except as noted below, if you answer “Yes” to either one of
Count wages you paid to aliens who were admitted to
the United States on a temporary basis to perform
farmwork (workers with H-2A visas). However, wages paid
to “H-2A visa workers” aren't subject to FUTA tax. See
Pub. 51 for more information.
these questions, you must file Form 940.
Did you pay wages of $1,500 or more to employees in
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any calendar quarter during 2022 or 2023?
Did you have one or more employees for at least some
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part of a day in any 20 or more different weeks in 2022 or
20 or more different weeks in 2023? Count all full-time,
part-time, and temporary employees. However, if your
business is a partnership, don't count its partners.
For Indian Tribal Governments . . .
Services rendered by employees of a federally recognized
Indian tribal government employer (including any
subdivision, subsidiary, or business enterprise wholly
owned by the tribe) are exempt from FUTA tax and no
Form 940 is required. However, the tribe must have
participated in the state unemployment system for the full
year and be in compliance with applicable state
unemployment law. For more information, see section
3309(d).
If your business was sold or transferred during the year,
each employer who answered “Yes” to at least one
question above must file Form 940. However, don't include
any wages paid by the predecessor employer on your
Form 940 unless you’re a successor employer. For details,
If you’re not liable for FUTA tax for 2023 because you
made no payments to employees in 2023, check box c in
the top right corner of the form. Then, go to Part 7, sign
the form, and file it with the IRS.
For Tax-Exempt Organizations . . .
Religious, educational, scientific, charitable, and other
organizations described in section 501(c)(3) and exempt
from tax under section 501(a) generally aren't subject to
FUTA tax. However, a section 501(c)(3) organization is
subject to FUTA tax when paying wages to employees on
behalf of a non-section 501(c)(3) organization (for
example, a section 501(c)(3) organization paying wages to
employees of a related non-section 501(c)(3)
If you won’t be liable for filing Form 940 in the future
because your business has closed or because you
stopped paying wages, check box d in the top right corner
of the form. For more information, see Final: Business
later.
organization, a section 501(c)(3) organization that is a
section 3504 agent paying wages on behalf of a
For Employers of Household Employees . . .
If you’re a household employer, you must pay FUTA tax on
wages that you paid to your household employees only if
non-section 501(c)(3) organization, a section 501(c)(3)
organization that is a common paymaster paying wages
on behalf of a non-section 501(c)(3) organization, etc.).
Instructions for Form 940 (2023)
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If any due date for filing falls on a Saturday, Sunday, or
legal holiday, you may file your return on the next business
day.
For State or Local Government Employers . . .
Services rendered by employees of a state, or a political
subdivision or instrumentality of the state, are exempt from
FUTA tax and no Form 940 is required.
Where Do You File?
When Must You File Form 940?
The due date for filing Form 940 for 2023 is January 31,
2024. However, if you deposited all your FUTA tax when it
was due, you may file Form 940 by February 12, 2024.
You’re encouraged to file Form 940 electronically. Go to
IRS.gov/EmploymentEfile for more information on
electronic filing. If you file a paper return, where you file
depends on whether you include a payment with Form
940. Mail your return to the address listed for your location
in the table that follows.
If we receive Form 940 after the due date, we will treat
Form 940 as filed on time if the envelope containing Form
940 is properly addressed, contains sufficient postage,
and is postmarked by the U.S. Postal Service on or before
the due date, or sent by an IRS-designated private
delivery service (PDS) on or before the due date.
However, if you don't follow these guidelines, we will
generally consider Form 940 filed when it is actually
received. For more information about PDSs, see Where
PDSs can't deliver to P.O. boxes. You must use the U.S.
Postal Service to mail an item to a P.O. box address. Go to
IRS.gov/PDS for the current list of PDSs. For the IRS
mailing address to use if you’re using a PDS, go to
IRS.gov/PDSstreetAddresses. Select the mailing address
listed on the webpage that is in the same state as the
address to which you would mail returns filed without a
payment, as shown in the table that follows.
Mailing Addresses for Form 940
If you’re in . . .
Without a payment . . .
With a payment . . .
Connecticut, Delaware, District of Columbia, Georgia, Illinois, Department of the Treasury
Internal Revenue Service
P.O. Box 806531
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
Internal Revenue Service
Kansas City, MO 64999-0046 Cincinnati, OH 45280-6531
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
Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0046
Internal Revenue Service
P.O. Box 932000
Louisville, KY 40293-2000
Puerto Rico, U.S. Virgin Islands
Internal Revenue Service
P.O. Box 409101
Ogden, UT 84409
Internal Revenue Service
P.O. Box 932000
Louisville, KY 40293-2000
If the location of your legal residence, principal place of
business, office, or agency is not listed
Internal Revenue Service
P.O. Box 409101
Ogden, UT 84409
Internal Revenue Service
P.O. Box 932000
Louisville, KY 40293-2000
EXCEPTION for tax-exempt organizations; federal, state, and Department of the Treasury
Internal Revenue Service
P.O. Box 932000
Louisville, KY 40293-2000
local governments; and Indian tribal governments, regardless Internal Revenue Service
of your location
Ogden, UT 84201-0046
Your filing address may have changed from that
is true regardless of whether state law defers the payment
of taxes due until after this date. If you didn't pay all state
unemployment tax by the due date of Form 940, see the
line 10 instructions. For wages paid to a work site
employee, a CPEO is eligible for the credit whether the
CPEO or a customer of the CPEO made the contribution
with respect to a work site employee.
used to file your employment tax return in prior
years.
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CAUTION
Credit for State Unemployment Tax
Paid to a State Unemployment Fund
Generally, you get a credit for amounts you pay to a state
(including the District of Columbia, Puerto Rico, and the
U.S. Virgin Islands) unemployment fund by January 31,
2024 (or February 12, 2024, if that is your Form 940 due
date). Your FUTA tax may be higher if you don't pay the
state unemployment tax timely by January 31, 2024 (or
February 12, 2024, if that is your Form 940 due date). This
State unemployment taxes are sometimes called
contributions. These contributions are payments that a
state requires an employer to make to its unemployment
fund for the payment of unemployment benefits. They
don't include:
Any payments deducted or deductible from your
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employees' pay;
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Instructions for Form 940 (2023)
Penalties, interest, or special administrative taxes; and
Voluntary amounts you paid to get a lower assigned
When To Deposit Your FUTA Tax
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•
If your undeposited FUTA tax
state experience rate.
is more than $500 on . . .*
Deposit your tax by . . .
Additional credit. You may receive an additional credit if
you have a state experience rate lower than 5.4% (0.054).
This applies even if your rate varies during the year. This
additional credit is the difference between your actual
state unemployment tax payments and the amount you
would have been required to pay at 5.4%. For wages paid
to a work site employee, the CPEO is allowed the
March 31
June 30
September 30
December 31
April 30
July 31
October 31
January 31
If any deposit due date falls on a Saturday,
Sunday, or legal holiday, you may deposit on the
additional credit if the CPEO is allowed, under state law, to
collect and remit contributions to the state unemployment
fund with respect to a work site employee.
TIP
deposits, later.
Special credit for successor employers. You may be
eligible for a credit based on the state unemployment
taxes paid by a predecessor. You may claim this credit if
you’re a successor employer who acquired a business in
2023 from a predecessor who wasn't an employer for
FUTA purposes and, therefore, wasn't required to file
Form 940 for 2023. See section 3302(e). You can include
amounts paid by the predecessor on the
How Do You Figure Your FUTA Tax
Liability for Each Quarter?
You owe FUTA tax on the first $7,000 you pay to each
employee during the calendar year after subtracting any
payments exempt from FUTA tax. The FUTA tax is 6.0%
(0.060) for 2023. Most employers receive a maximum
credit of up to 5.4% (0.054) against this FUTA tax. Every
quarter, you must figure how much of the first $7,000 of
each employee's annual wages you paid during that
quarter.
Worksheet—Line 10 as if you paid them. For details on
When Must You Deposit Your FUTA
Tax?
Although Form 940 covers a calendar year, you may have
to deposit your FUTA tax before you file your return. If your
FUTA tax is more than $500 for the calendar year, you
must deposit at least one quarterly payment.
Figure Your Tax Liability
Before you can figure the amount to deposit, figure your
FUTA tax liability for the quarter. To figure your tax liability,
add the first $7,000 of each employee's annual wages you
paid during the quarter for FUTA wages paid and multiply
that amount by 0.006.
The tax rates are based on your receiving the maximum
credit against FUTA taxes. You’re entitled to the maximum
credit if you paid all state unemployment tax by the due
date of your Form 940 or if you weren't required to pay
state unemployment tax during the calendar year due to
your state experience rate.
Example. During the first quarter, you had three
employees: Mary Smith, George Jones, and Jane Moore.
You paid $11,000 to Mary, $2,000 to George, and $4,000
to Jane. None of the payments made were exempt from
FUTA tax.
You must determine when to deposit your tax based on
the amount of your quarterly tax liability. If your FUTA tax is
$500 or less in a quarter, carry it over to the next quarter.
Continue carrying your tax liability over until your
cumulative tax is more than $500. At that point, you must
deposit your tax for the quarter. Deposit your FUTA tax by
the last day of the month after the end of the quarter. If
your tax for the next quarter is $500 or less, you’re not
required to deposit your tax again until the cumulative
amount is more than $500.
Fourth quarter liabilities. If your FUTA tax for the fourth
quarter (plus any undeposited amounts from earlier
quarters) is more than $500, deposit the entire amount by
January 31, 2024. If it is $500 or less, you can either
deposit the amount or pay it with your Form 940 by
January 31, 2024.
To figure your liability for the first quarter, add the first $7,000 of each
employee's wages subject to FUTA tax:
$7,000 Mary’s wages subject to FUTA tax
2,000 George's wages subject to FUTA tax
+ 4,000 Jane's wages subject to FUTA tax
$13,000 Total wages subject to FUTA tax for the first quarter
In years when there are credit reduction states,
you must include liabilities owed for credit reduction
with your fourth quarter deposit.
$13,000 Total wages subject to FUTA tax for the first quarter
x 0.006 Tax rate (based on maximum credit of 5.4%)
$78 Your liability for the first quarter
In this example, you don't have to make a deposit because your liability is
$500 or less for the first quarter. However, you must carry this liability over
to the second quarter.
If any wages subject to FUTA tax aren't subject to state
unemployment tax, you may be liable for FUTA tax at the
maximum rate of 6.0%. For instance, in certain states,
Instructions for Form 940 (2023)
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wages paid to corporate officers, certain payments of sick
pay by unions, and certain fringe benefits are excluded
from state unemployment tax.
Example. Mary Smith and George Jones are
corporate officers whose wages are excluded from state
unemployment tax in your state. Jane Moore’s wages
aren't excluded from state unemployment tax. During the
first quarter, you paid $11,000 to Mary, $2,000 to George,
and $4,000 to Jane.
availability, deadlines, and costs. Your financial institution
may charge you a fee for payments made this way. To
learn more about the information you will need to give your
financial institution to make a same-day wire payment, go
Timeliness of federal tax deposits. If a deposit is
required to be made on a day that isn't a business day, the
deposit is considered timely if it is made by the close of
the next business day. A business day is any day other
than a Saturday, Sunday, or legal holiday. The term “legal
holiday” for deposit purposes includes only those legal
holidays in the District of Columbia. Legal holidays in the
District of Columbia are provided in section 11 of Pub. 15.
$ 9,000 Total FUTA wages for Mary and George in first quarter
x 0.060 Tax rate
$540 Your liability for the first quarter for Mary and George
How Can You Avoid Penalties and
Interest?
$4,000 Total FUTA wages subject to state unemployment tax
x 0.006 Tax rate (based on maximum credit of 5.4%)
$24 Your liability for the first quarter for Jane
You can avoid paying penalties and interest if you do all of
$540 Your liability for the first quarter for Mary and George
+ 24 Your liability for first quarter for Jane
$564 Your liability for the first quarter for Mary, George, and Jane
the following.
Deposit and pay your tax when it is due.
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File your fully completed Form 940 accurately and on
time.
In this example, you must deposit $564 by April 30 because your liability
for the first quarter is more than $500.
Attach Schedule R (Form 940) if required.
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Ensure your tax payments are honored by your financial
institution.
How Must You Deposit Your FUTA
Tax?
Penalties and interest are charged on taxes paid late
and returns filed late at a rate set by law. See sections 11
and 12 of Pub. 15 for details.
You Must Deposit Your FUTA Tax Using EFT
Use Form 843 to request abatement of assessed
penalties or interest. Don't request abatement of assessed
penalties or interest on Form 940.
You must use EFT to make all federal tax deposits.
Generally, an EFT is made using EFTPS. If you don't want
to use EFTPS, you can arrange for your tax professional,
financial institution, payroll service, or other trusted third
party to make electronic deposits on your behalf. Also, you
may arrange for your financial institution to initiate a
same-day wire payment on your behalf. EFTPS is a free
service provided by the Department of the Treasury.
Services provided by your tax professional, financial
institution, payroll service, or other third party may have a
fee.
If you receive a notice about a penalty after you file this
return, reply to the notice with an explanation and we will
determine if you meet reasonable-cause criteria. Don't
attach an explanation when you file your return.
Can You Amend a Return?
Beginning sometime in 2024, the IRS expects to
make filing an amended Form 940 available as
part of Modernized e-File (MeF). Monitor IRS.gov
TIP
For more information on making federal tax deposits,
see Pub. 966. To get more information about EFTPS or to
numbers provided under Federal tax deposits must be
made by electronic funds transfer (EFT), earlier.
for more information on availability.
You use the 2023 Form 940 to amend a return that you
previously filed for 2023. If you’re amending a return for a
previous year, use that previous year's Form 940.
Follow the steps below to amend your return.
If your business is new, the IRS will automatically
pre-enroll you in EFTPS when you apply for an EIN. Follow
the instructions on your EIN package to activate your
enrollment.
Use a paper return to amend a Form 940, even if the
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Form 940 was filed electronically, until the ability to file an
amended Form 940 electronically becomes available.
Check the amended return box in the top right corner of
•
For an EFTPS deposit to be on time, you must
Form 940, page 1, box a.
Fill in all the amounts that should have been on the
submit the deposit by 8 p.m. Eastern time the day
!
•
CAUTION
before the date the deposit is due.
original form.
Same-day wire payment option. If you fail to submit a
deposit transaction on EFTPS by 8 p.m. Eastern time the
day before the date a deposit is due, you can still make
your deposit on time by using the Federal Tax Collection
Service (FTCS) to make a same-day wire payment. To use
the same-day wire payment method, you will need to
make arrangements with your financial institution ahead of
time. Please check with your financial institution regarding
Sign the form.
•
•
Attach an explanation, including an attachment in MeF
if filing the amended return electronically, telling us why
you’re amending your return. For example, tell us if you’re
filing to claim credit for tax paid to your state
unemployment fund after the due date of Form 940.
Unless filing the amended return electronically, file the
•
amended return using the Without a payment address
-6-
Instructions for Form 940 (2023)
earlier) or call the IRS at 800-829-4933 (toll free). If you're
outside the United States, call 267-941-1000 (toll call).
earlier.
If you file an amended return for an aggregate Form
•
If you don't have an EIN, you may apply for one by
faxing or mailing Form SS-4 or SS-4 (sp) to the IRS. If the
principal business was created or organized outside the
United States or U.S. territories, you may also apply for an
EIN by calling 267-941-1099 (toll call). If you haven’t
received your EIN by the due date of Form 940, write
“Applied For” and the date you applied in the space shown
for the number.
940, be sure to attach Schedule R (Form 940). Complete
Schedule R (Form 940) only for employers who have
adjustments on the amended Form 940.
Completing Your Form 940
Follow These Guidelines To Correctly Fill Out
the Form
Make entries on Form 940 as follows to enable accurate
scanning and processing.
If you’re filing your tax return electronically, a valid
EIN is required at the time the return is filed. If a
!
Make sure your business name and EIN are on every
•
CAUTION
valid EIN isn't provided, the return won't be
page of the form and any attachments.
accepted. This may result in penalties.
If you type or use a computer to fill out your form, use a
•
12-point Courier font, if possible. Portable Document
Format (PDF) forms on IRS.gov have fillable fields with
acceptable font specifications.
Always be sure the EIN on the form you file exactly
matches the EIN that the IRS assigned to your
business. Don't use a social security number
TIP
Don't enter dollar signs and decimal points. Commas
•
(SSN) or individual taxpayer identification number (ITIN)
on forms that ask for an EIN. Filing a Form 940 with an
incorrect EIN or using the EIN of another's business may
result in penalties and delays in processing your return.
are optional. Enter dollars to the left of the preprinted
decimal point and cents to the right of it.
You may choose to round your amounts to the nearest
•
dollar, instead of reporting cents on this form. If you
choose to round, you must round all entries. To round,
drop the amounts under 50 cents and increase the
amounts from 50 to 99 cents to the next dollar. For
example, $1.49 becomes $1.00 and $2.50 becomes
$3.00. If you use two or more amounts to figure an entry
on the form, use cents to figure the answer and round the
answer only.
Tell Us if You Change Your Business Name,
Business Address, or Responsible Party
Notify the IRS immediately if you change your business
name, business address, or responsible party.
Name change. Write to the IRS office where you filed
your return (using the Without a payment address under
change. See Pub. 1635 to see if you also need to apply for
a new EIN.
Address or responsible party change. Complete and
mail Form 8822-B to notify the IRS of an address or
responsible party change. Don’t mail Form 8822-B with
your Form 940. For a definition of "responsible party," see
the Instructions for Form SS-4.
If you have a line with the value of zero, leave it blank.
•
Employer Identification Number (EIN),
Name, Trade Name, and Address
Enter Your Business Information at the Top of
the Form
Enter your EIN, name, and address in the spaces
provided. You must enter your name and EIN here and on
page 2. Enter the business (legal) name that you used
when you applied for your EIN on Form SS-4. For
example, if you’re a sole proprietor, enter “Ronald Smith”
on the Name line and “Ron's Cycles” on the Trade Name
line. Leave the Trade Name line blank if it is the same as
your Name.
Type of Return
Review the box at the top of the form. If any line applies to
you, check the appropriate box to tell us which type of
return you’re filing. You may check more than one box.
Amended. If this is an amended return that you’re filing to
correct a return that you previously filed, check box a.
If you pay a tax preparer to fill out Form 940, make sure
the preparer shows your business name exactly as it
appeared when you applied for your EIN.
Successor employer. Check box b if you're a successor
employer and:
Employer identification number (EIN). To make sure
that businesses comply with federal tax laws, the IRS
monitors tax filings and payments by using a numerical
system to identify taxpayers. A unique nine-digit EIN is
assigned to all corporations, partnerships, and some sole
proprietors. Businesses needing an EIN must apply for a
number and use it throughout the life of the business on all
tax returns, payments, and reports.
Your business should have only one EIN. If you have
more than one and aren't sure which one to use, write to
the IRS office where you file your returns (using the
You’re reporting wages paid before you acquired the
•
business by a predecessor who was required to file a
Form 940 because the predecessor was an employer for
FUTA tax purposes, or
You’re claiming a special credit for state unemployment
•
tax paid before you acquired the business by a
predecessor who wasn't required to file a Form 940
because the predecessor wasn't an employer for FUTA
tax purposes.
A successor employer is an employer who:
Acquires substantially all the property used in a trade or
•
business of another person (predecessor) or used in a
separate unit of a trade or business of a predecessor; and
Instructions for Form 940 (2023)
-7-
Immediately after the acquisition, employs one or more
•
1b. More than one state (you’re a multi-state employ-
er). Check the box on line 1b. Then, fill out Schedule A
(Form 940) and attach it to your Form 940.
people who were employed by the predecessor.
No payments to employees in 2023. If you’re not liable
for FUTA tax for 2023 because you made no payments to
employees in 2023, check box c. Then, go to Part 7, sign
the form, and file it with the IRS.
Final: Business closed or stopped paying wages. If
this is a final return because you went out of business or
stopped paying wages and you won't be liable for filing
Form 940 in the future, check box d. Complete all
applicable lines on the form, sign it in Part 7, and file it with
the IRS. Also attach a statement to your return showing
the name of the person keeping the payroll records and
the address where those records will be kept.
Disregarded entities. A disregarded entity is required to
file Form 940 using its name and EIN, not the name and
EIN of its owner. An entity that has a single owner and is
disregarded as separate from its owner for federal income
tax purposes is treated as a separate entity for purposes
of payment and reporting federal employment taxes. If the
entity doesn't currently have an EIN, it must apply for one
using one of the methods under Employer identification
number (EIN), earlier. Disregarded entities include
single-owner limited liability companies (LLCs) that
haven't elected to be taxed as a corporation for federal
income tax purposes, QSubs, and certain foreign entities
treated as disregarded entities for U.S. income tax
purposes. Although a disregarded entity is treated as a
separate entity for employment tax purposes, it isn't
subject to FUTA tax if it is owned by a tax-exempt
organization under section 501(c)(3) and isn't required to
file Form 940. For more information, see Disregarded
entities and qualified subchapter S subsidiaries in the
Introduction section of Pub. 15.
2. If You Paid Wages in a State That Is Subject to
Credit Reduction
A state that hasn't repaid money it borrowed from the
federal government to pay unemployment benefits is
called a credit reduction state. The U.S. Department of
Labor determines which states are credit reduction states.
If you paid wages that are subject to the unemployment
tax laws of a credit reduction state, you may have to pay
more FUTA tax when filing your Form 940.
For tax year 2023, there are credit reduction states. If
you paid wages subject to the unemployment tax laws of
these states, check the box on line 2 and fill out
Schedule A (Form 940). See the instructions for line 9
before completing the Schedule A (Form 940).
Part 2: Determine Your FUTA Tax
Before Adjustments
If any line in Part 2 doesn't apply, leave it blank.
3. Total Payments to All Employees
Report the total payments you made during the calendar
year on line 3. Include payments for the services of all
employees, even if the payments aren't taxable for FUTA.
Your method of payment doesn't determine whether
payments are wages. You may have paid wages hourly,
daily, weekly, monthly, or yearly. You may have paid wages
for piecework or as a percentage of profits. Include the
following.
Compensation, such as the following.
•
—Salaries, wages, commissions, fees, bonuses,
vacation allowances, and amounts you paid to
full-time, part-time, or temporary employees.
Fringe benefits, such as the following.
Specific Instructions
Part 1: Tell Us About Your Return
1. If You Were Required To Pay Your State
Unemployment Tax In . . .
•
—Sick pay (including third-party sick pay if liability is
transferred to the employer). For details on sick pay,
see Pub. 15-A, Employer's Supplemental Tax Guide.
—The value of goods, lodging, food, clothing, and
non-cash fringe benefits.
You must complete line 1a or line 1b even if you
weren’t required to pay any state unemployment
!
—Section 125 (cafeteria) plan benefits.
CAUTION
tax because your state unemployment tax rate(s)
Retirement/Pension, such as the following.
•
•
was zero. You may leave lines 1a and 1b blank only if all of
the wages you paid to all employees in all states were
excluded from state unemployment tax. If you leave lines
1a and 1b blank, and line 7 is more than zero, you must
complete line 9 because all of the taxable FUTA wages
you paid were excluded from state unemployment tax.
—Employer contributions to a 401(k) plan, payments
to an Archer MSA, payments under adoption
assistance programs, and contributions to SIMPLE
retirement accounts (including elective salary
reduction contributions).
—Amounts deferred under a non-qualified deferred
compensation plan.
Identify the state(s) where you were required to pay
state unemployment taxes.
Other payments, such as the following.
1a. One state only. Enter the two-letter U.S. Postal
Service abbreviation for the state where you were required
to pay your state unemployment tax on line 1a. For a list of
state abbreviations, see the Schedule A (Form 940)
instructions or go to the website for the U.S. Postal
—Tips of $20 or more in a month that your employees
reported to you.
—Payments made by a predecessor employer to the
employees of a business you acquired.
—Payments to nonemployees who are treated as your
employees by the state unemployment tax agency.
-8-
Instructions for Form 940 (2023)
Wages may be subject to FUTA tax even if they
are excluded from your state's unemployment tax.
—Payments for services provided to you by your
parent, spouse, or child under the age of 21. See
section 3 of Pub. 15.
!
CAUTION
—Payments for certain fishing activities. See Pub. 334,
Tax Guide for Small Business.
For details on wages and other compensation, see
section 5 of Pub. 15-A.
—Payments to certain statutory employees. See
section 1 of Pub. 15-A.
—Payments to nonemployees who are treated as your
employees by the state unemployment tax agency.
Example
You had three employees. You paid $44,000 to Joan
Rose, $8,000 to Sara Blue, and $16,000 to John Green.
$44,000 Amount paid to Joan
8,000 Amount paid to Sara
+ 16,000 Amount paid to John
See section 3306 and its related regulations for more
information about FUTA taxation of retirement plan
contributions, dependent care payments, and other
payments.
For more information on payments exempt from FUTA
tax, see section 15 of Pub. 15.
$68,000 Total payments to employees. You would enter this
amount on line 3.
4. Payments Exempt From FUTA Tax
Example
If you enter an amount on line 4, check the appropriate
box or boxes on lines 4a through 4e to show the types of
payments exempt from FUTA tax. You only report a
payment as exempt from FUTA tax on line 4 if you
included the payment on line 3.
You had three employees. You paid $44,000 to Joan
Rose, including $2,000 in health insurance benefits. You
paid $8,000 to Sara Blue, including $500 in retirement
benefits. You paid $16,000 to John Green, including
$2,000 in health and retirement benefits.
Some payments are exempt from FUTA tax because
the payments aren't included in the definition of wages or
the services aren't included in the definition of
employment. Payments exempt from FUTA tax may
include the following.
$ 2,000 Health insurance benefits for Joan
500 Retirement benefits for Sara
+ 2,000 Health and retirement benefits for John
$4,500 Total payments exempt from FUTA tax. You would enter
this amount on line 4 and check boxes 4a and 4c.
Fringe benefits, such as the following.
•
—The value of certain meals and lodging.
—Contributions to accident or health plans for
employees, including certain employer payments to a
health savings account or an Archer MSA.
—Payments for benefits excluded under section 125
(cafeteria) plans.
5. Total of Payments Made to Each Employee in
Excess of $7,000
Only the first $7,000 you paid to each employee in a
calendar year, after subtracting any payments exempt
from FUTA tax, is subject to FUTA tax. This $7,000 is
called the FUTA wage base.
Group-term life insurance. For information about
•
group-term life insurance and other payments for fringe
benefits that may be exempt from FUTA tax, see Pub.
15-B.
Enter on line 5 the total of the payments over the FUTA
wage base you paid to each employee during 2023 after
subtracting any payments exempt from FUTA tax
shown on line 4.
Retirement/Pension, such as employer contributions
•
to a qualified plan, including a SIMPLE retirement account
(other than elective salary reduction contributions) and a
401(k) plan.
Following Our Example
Dependent care, such as payments (up to $5,000 per
•
employee, $2,500 if married filing separately) for a
qualifying person's care that allows your employees to
work and that would be excludable by the employee under
section 129.
You had three employees. You paid $44,000 to Joan Rose, $8,000 to
Sara Blue, and $16,000 to John Green, including a total of $4,500 in
payments exempt from FUTA tax for all three employees. To
determine the total payments made to each employee in excess of the
FUTA wage base, the payments exempt from FUTA tax and the FUTA
wage base must be subtracted from total payments. These amounts
are shown in parentheses.
Other payments, such as the following.
•
—All non-cash payments and certain cash payments
for agricultural labor, and all payments to “H-2A” visa
Pub. 51.
Employees
Joan
$44,000
(2,000)
(7,000)
Sara
$8,000
(500)
John
$16,000
(2,000)
(7,000)
Total payments to employees
Payments exempt from FUTA tax
FUTA wage base
—Payments made under a workers' compensation law
because of a work-related injury or sickness. See
section 6 of Pub. 15-A.
(7,000)
$35,000
$
500
$ 7,000
$42,500
—Payments for domestic services if you didn't pay
cash wages of $1,000 or more (for all domestic
employees) in any calendar quarter in 2022 or 2023,
or if you file Schedule H (Form 1040). See For
Employers of Household Employees, earlier, or Pub.
926.
Total of payments made to each employee in excess of
the FUTA wage base. You would enter this amount on
line 5.
Instructions for Form 940 (2023)
-9-
9. If ALL of the Taxable FUTA Wages You Paid
Were Excluded From State Unemployment
Tax . . .
If you’re a successor employer . . . When you figure
the payments made to each employee in excess of the
FUTA wage base, you may include the payments that the
predecessor made to the employees who continue to
work for you only if the predecessor was an employer for
FUTA tax purposes resulting in the predecessor being
required to file Form 940.
Line 9 doesn't apply to FUTA wages on which you
paid no state unemployment tax only because the
!
CAUTION
state assigned you a tax rate of 0%.
If all of the taxable FUTA wages you paid were
excluded from state unemployment tax, multiply line 7 by
0.054 and enter the result on line 9.
Example for Successor Employers
During the calendar year, the predecessor employer paid $5,000 to Susan
Jones. You acquired the predecessor's business. After the acquisition, you
employed Susan and paid Susan an additional $3,000 in wages. None of
the amounts paid to Susan were payments exempt from FUTA tax.
line 7
x 0.054
line 9
$5,000 Wages paid by predecessor employer
+ 3,000 Wages paid by you
$8,000 Total payments to Susan. You would include this amount on
line 3.
If you weren't required to pay state unemployment tax
because all of the wages you paid were excluded from
state unemployment tax, you must pay FUTA tax at the
6.0% (0.060) rate. For example, if your state
$8,000 Total payments to Susan
– 7,000 FUTA wage base
$1,000 Payments made to Susan in excess of the FUTA wage base
unemployment tax law excludes wages paid to corporate
officers or employees in specific occupations, and the only
wages you paid were to corporate officers or employees in
those specific occupations, you must pay FUTA tax on
those wages at the full FUTA rate of 6.0% (0.060). When
you figured the FUTA tax before adjustments on line 8, it
was based on the maximum allowable credit (5.4%) for
state unemployment tax payments. Because you didn't
pay state unemployment tax, you don't have a credit and
must figure this adjustment.
$1,000 Payments made to Susan in excess of the FUTA wage base
+ 5,000 Taxable FUTA wages paid by predecessor employer
$6,000 You would include this amount on line 5.
6. Subtotal
To figure your subtotal, add the amounts on lines 4 and 5
and enter the result on line 6.
If line 9 applies to you, lines 10 and 11 don't apply to
you. Therefore, leave lines 10 and 11 blank. Don't fill out
the worksheet in these instructions. Complete Schedule A
(Form 940) only if you’re a multi-state employer.
line 4
+ line 5
line 6
10. If SOME of the Taxable FUTA Wages You Paid
Were Excluded From State Unemployment Tax,
or You Paid Any State Unemployment Tax
Late . . .
7. Total Taxable FUTA Wages
To figure your total taxable FUTA wages, subtract line 6
from line 3 and enter the result on line 7.
line 3
− line 6
You must fill out the worksheet on the next page if:
Some of the taxable FUTA wages you paid were
•
line 7
excluded from state unemployment tax, or
Any of your payments of state unemployment tax were
•
late.
The worksheet takes you step by step through the process
of figuring your credit. At the end of the worksheet you'll
find an example of how to use it. Don't complete the
worksheet if line 9 applied to you (see the instructions for
line 9, earlier).
8. FUTA Tax Before Adjustments
To figure your total FUTA tax before adjustments, multiply
line 7 by 0.006 and then enter the result on line 8.
line 7
x 0.006
Before you can properly fill out the worksheet, you
will need to gather the following information.
line 8
Taxable FUTA wages (Form 940, line 7).
•
Taxable state unemployment wages (state and federal
•
wage bases may differ).
Part 3: Determine Your Adjustments
If any line in Part 3 doesn't apply, leave it blank.
The experience rates assigned to you by the states
•
where you paid wages.
The amount of state unemployment taxes you paid on
•
time. “On time” means that you paid the state
unemployment taxes by the due date for filing Form 940.
The amount of state unemployment taxes you paid late.
•
“Late” means after the due date for filing Form 940.
-10-
Instructions for Form 940 (2023)
Don't include any penalties, interest, or
unemployment taxes deducted from your
employees' pay in the amount of state
each assigned experience rate separately on the
worksheet.
!
CAUTION
If you were assigned six or more experience rates that
•
unemployment taxes. Also, don't include as state
unemployment taxes any special administrative taxes or
voluntary contributions you paid to get a lower assigned
experience rate or any surcharges, excise taxes, or
employment and training taxes. These items are generally
listed as separate items on the state's quarterly wage
report.
were less than 5.4% for any part of the calendar year, you
must use another sheet to figure the additional credits and
then include those additional credits in your line 3 total.
After you complete the worksheet, enter the amount
from line 7 of the worksheet on Form 940, line 10. Don't
attach the worksheet to your Form 940. Keep it with
your records.
For line 3 of the worksheet:
If any of the experience rates assigned to you were less
•
than 5.4% for any part of the calendar year, you must list
Instructions for Form 940 (2023)
-11-
Worksheet—Line 10
Keep for Your Records
Read the Example on the next page before completing this worksheet.
Before you begin:
Use this worksheet to figure your credit if:
Some of the wages you paid were excluded from state unemployment tax, OR
You paid any state unemployment tax late.
For this worksheet, don't round your figures.
Before you can properly fill out this worksheet, you must gather the following information.
■
■
■
■
Taxable FUTA wages (Form 940, line 7).
Taxable state unemployment wages.
The experience rates assigned to you by the states where you paid wages.
The amount of state unemployment taxes you paid on time. “On time” means that you paid the state unemployment taxes by the due date for filing Form 940.
Include any state unemployment taxes you paid on nonemployees who were treated as employees by your state unemployment agency.
■
The amount of state unemployment taxes you paid late. “Late” means after the due date for filing Form 940.
1. Maximum allowable credit — Enter Form 940, line 7
.
x
0.054 on line 1
1.
2.
.
.
(Form 940, line 7 x 0.054 = line 1).
2. Credit for timely state unemployment tax payments — How much did you pay on time?
STOP
•
•
If line 2 is equal to or more than line 1, STOP here.
If line 2 is less than line 1, continue this worksheet.
You’ve completed the worksheet. Leave Form 940, line 10, blank.
3. Additional credit — Were ALL of your assigned experience rates 5.4% or more?
•
•
If yes, enter zero on line 3. Then, go to line 4 of this worksheet.
If no, fill out the computations below. List ONLY THOSE STATES for which your assigned experience rate for any part of the
calendar year was less than 5.4%.
State
Computation rate
Taxable state
Additional credit
unemployment wages at
assigned experience rate
The difference between 5.4%
(0.054) and your assigned
experience rate (0.054 – .XXX
(assigned experience rate) =
computation rate)
1.
2.
3.
4.
5.
.
.
.
.
.
x
x
x
x
x
.
.
.
.
.
=
=
=
=
=
.
.
.
.
.
If you need more lines, use another sheet and include those
additional credits in the total.
Total
.
Enter the total on line 3.
3.
4.
.
.
4. Subtotal (line 2 + line 3 = line 4)
STOP
•
•
If line 4 is equal to or more than line 1, STOP here.
If line 4 is less than line 1, continue this worksheet.
You’ve completed the worksheet. Leave Form 940, line 10, blank.
5. Credit for paying state unemployment taxes late:
5a. What is your remaining allowable credit? (line 1 – line 4 = line 5a)
5b. How much state unemployment tax did you pay late?
5a.
5b.
5c.
.
.
.
5c. Which is smaller, line 5a or line 5b? Enter the smaller number here.
5d. Your allowable credit for paying state unemployment taxes late (line 5c x 0.900 = line 5d)
6. Your FUTA credit (line 4 + line 5d = line 6)
5d.
6.
.
.
STOP
•
•
If line 6 is equal to or more than line 1, STOP here.
If line 6 is less than line 1, continue this worksheet.
You’ve completed the worksheet. Leave Form 940, line 10, blank.
7. Your adjustment (line 1 – line 6 = line 7)
Enter line 7 from this worksheet on
Form 940, line 10.
7.
.
Don't attach this worksheet to your Form 940. Keep it for your records.
-12-
Instructions for Form 940 (2023)
11. If Credit Reduction Applies . . .
Example for Using the Worksheet
If you paid FUTA taxable wages that were also subject to
state unemployment taxes in any states that are subject to
credit reduction, enter the total amount from Schedule A
(Form 940) on Form 940, line 11. However, if you entered
an amount on line 9 because all the FUTA taxable wages
you paid were excluded from state unemployment tax,
skip line 11 and go to line 12.
Jill Brown and Tom White are corporate officers whose wages are
excluded from state unemployment tax in your state. Jack Davis’s wages
aren't excluded from state unemployment tax. During 2023, you paid
$44,000 to Jill, $22,000 to Tom, and $16,000 to Jack. Your state's wage
base is $8,000. You paid some state unemployment tax on time, some
late, and some remains unpaid.
Here are the records:
Part 4: Determine Your FUTA Tax and
Balance Due or Overpayment
Total taxable FUTA wages (Form 940, line 7)
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
$21,000.00
$ 8,000.00
0.041 (4.1%)
$100.00
Taxable state unemployment wages
Experience rate for 2023
State unemployment tax paid on time
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
If any line in Part 4 doesn't apply, leave it blank.
State unemployment tax paid late
State unemployment tax not paid
.
.
$78.00
$150.00
12. Total FUTA Tax After Adjustments
Add the amounts shown on lines 8, 9, 10, and 11, and
enter the result on line 12.
.
.
1. Maximum allowable credit
$21,000.00 (Form 940, line 7)
x 0.054 (maximum credit rate)
$1,134.00
line 8
line 9
line 10
+ line 11
1. $1,134.00
2. Credit for timely state unemployment tax
payments
2.
$100.00
line 12
3. Additional credit
0.054 (maximum credit rate)
– 0.041 (your experience rate)
0.013 (your computation rate)
$8,000
x 0.013
$104.00 3.
If line 9 is greater than zero, lines 10 and 11 must
be zero because they don't apply.
!
$104.00
$204.00
CAUTION
4. Subtotal (line 2 + line 3)
13. FUTA Tax Deposited for the Year
Enter the amount of FUTA tax that you deposited for the
year, including any overpayment that you applied from a
prior year.
$100.00
+ 104.00
$204.00
4.
5. Credit for paying state unemployment taxes late
14. Balance Due
5a.
Remaining allowable credit (line 1 – line 4)
If line 13 is less than line 12, enter the difference on
line 14.
$1,134.00
– 204.00
$930.00
5a.
5b.
5c.
$930.00
$78.00
$78.00
line 12
– line 13
line 14
5b.
5c.
5d.
State unemployment tax paid late
Which is smaller, line 5a or line 5b?
Allowable credit (for paying
late)
$78.00
x 0.900
$70.20
If line 14 is:
More than $500, you must deposit your tax. See When
•
5d.
6.
$70.20
$274.20
$859.80
$500 or less, you can deposit your tax, pay your tax with
•
6. Your FUTA credit (line 4 + line 5d)
a credit card or debit card, pay your tax by EFW if filing
electronically, or pay your tax by check or money order
with your return. For more information on electronic
$204.00
+ 70.20
$274.20
Less than $1, you don't have to pay it.
7. Your adjustment (line 1 – line 6)
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$1,134.00
– 274.20
$859.80
If you don't deposit as required and pay any
balance due with Form 940, you may be subject to
!
CAUTION
a penalty.
7.
You would enter line 7 from this worksheet
on Form 940, line 10.
If you pay by EFT, credit card, or debit card, file your
Voucher.
Instructions for Form 940 (2023)
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To figure your FUTA tax liability for the fourth quarter,
complete Form 940 through line 12. Then, copy the
amount from line 12 onto line 17. Lastly, subtract the sum
of lines 16a through 16c from line 17 and enter the result
on line 16d.
What if you can't pay in full? If you can't pay the full
amount of tax you owe, you can apply for an installment
agreement online. You can apply for an installment
agreement online if:
You can't pay the full amount shown on line 14,
The total amount you owe is $25,000 or less, and
You can pay the liability in full in 24 months.
•
•
•
Example
You paid wages on March 28 and your FUTA tax on those wages was
$200. You weren't required to make a deposit for the 1st quarter
because your accumulated FUTA tax was $500 or less. You paid
additional wages on June 28 and your FUTA tax on those wages was
$400. Because your accumulated FUTA tax for the 1st and 2nd
quarters exceeded $500, you were required to make a deposit of $600
by July 31.
To apply using the Online Payment Agreement
Under an installment agreement, you can pay what you
owe in monthly installments. There are certain conditions
you must meet to enter into and maintain an installment
agreement, such as paying the liability within 24 months,
and making all required deposits and timely filing tax
returns during the length of the agreement.
If your installment agreement is accepted, you will be
charged a fee and you will be subject to penalties and
interest on the amount of tax not paid by the due date of
the return.
You would enter $200 on line 16a because your liability for the 1st
quarter is $200. You would also enter $400 on line 16b to show your
2nd quarter liability.
In years when there are credit reduction states,
you must include liabilities owed for credit
TIP
15. Overpayment
If line 13 is more than line 12, enter the difference on
line 15.
reduction with your fourth quarter deposit. You
may deposit the anticipated extra liability throughout the
year, but it isn't due until the due date for the deposit for
the fourth quarter, and the associated liability should be
recorded as being incurred in the fourth quarter.
line 13
– line 12
17. Total Tax Liability for the Year
line 15
Your total tax liability for the year must equal line 12. Copy
the amount from line 12 onto line 17.
If you deposited more than the FUTA tax due for the
year, you may choose to have us either:
Part 6: May We Speak With Your
Third-Party Designee?
If you want to allow an employee, your paid tax preparer,
or another person to discuss your Form 940 with the IRS,
check the “Yes” box. Then, enter the name and phone
number of the person you choose as your designee. Be
sure to give us the specific name of a person—not the
name of the firm that prepared your tax return.
Apply the refund to your next return, or
Send you a refund.
•
•
Check the appropriate box on line 15 to tell us which
option you select. Check only one box on line 15. If you
don’t check either box or if you check both boxes, we will
generally apply the overpayment to your next return.
Regardless of any box you check or don’t check, we may
apply your overpayment to any past due tax account that
is shown in our records under your EIN.
Have your designee select a five-digit personal
identification number (PIN) that they must use as
identification when talking to the IRS about your form.
If line 15 is less than $1, we will send you a refund or
apply it to your next return only if you ask for it in writing.
Part 5: Report Your FUTA Tax Liability
by Quarter Only if Line 12 Is More
Than $500
By checking “Yes,” you authorize us to talk to your
designee about any questions that we may have while we
process your return. Your authorization applies only to this
form, for this year; it doesn't apply to other forms or other
tax years.
Fill out Part 5 only if line 12 is more than $500. If line 12 is
You’re authorizing your designee to:
$500 or less, leave Part 5 blank and go to Part 6.
Give us any information that is missing from your return,
Ask us for information about processing your return,
•
•
16. Report the Amount of Your FUTA Tax
Liability for Each Quarter
and
Respond to certain IRS notices that you have shared
•
Enter the amount of your FUTA tax liability for each
quarter on lines 16a–d. Don't enter the amount you
deposited. If you had no liability for a quarter, leave the
line blank.
with your designee about math errors and in preparing
your return. We won't send notices to your designee.
You’re not authorizing your designee to:
16a. 1st quarter (January 1 to March 31)
Receive any refund check,
•
•
16b. 2nd quarter (April 1 to June 30)
Bind you to anything (including additional tax liability),
16c. 3rd quarter (July 1 to September 30)
16d. 4th quarter (October 1 to December 31)
or
•
Otherwise represent you before the IRS.
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Instructions for Form 940 (2023)
The authorization will automatically expire 1 year after
the due date for filing your Form 940 (regardless of
extensions). If you or your designee wants to end the
authorization before it expires, write to the IRS office for
your location using the Without a payment address under
If you want to expand your designee's authorization or if
you want us to send your designee copies of your notices,
see Pub. 947.
enter the firm's name and the EIN of the firm. You can
apply for a PTIN online or by filing Form W-12. For more
information about applying for a PTIN online, go to
of the tax preparation firm.
Generally, don't complete the Paid Preparer Use Only
section if you’re filing the return as a reporting agent and
have a valid Form 8655 on file with the IRS. However, a
reporting agent must complete this section if the reporting
agent offered legal advice, for example, by advising the
client on determining whether its workers are employees
or independent contractors for federal tax purposes.
Part 7: Sign Here (Approved Roles)
You MUST Fill Out Both Pages of This Form and
SIGN It
Failure to sign will delay the processing of your return.
On page 2 in Part 7, sign and print your name and title.
Then, enter the date and the best daytime telephone
number, including area code, where we can reach you if
we have any questions.
Privacy Act and Paperwork Reduction Act Notice. We
ask for the information on Form 940 to carry out the
Internal Revenue laws of the United States. We need it to
figure and collect the right amount of tax. Subtitle C,
Employment Taxes, of the Internal Revenue Code
imposes unemployment tax under the Federal
Unemployment Tax Act. Form 940 is used to determine
the amount of the taxes that you owe. Section 6011
requires you to provide the requested information if the tax
is applicable to you. Section 6109 requires you to provide
your identification number. If you fail to provide this
information in a timely manner, or provide false or
fraudulent information, you may be subject to penalties.
Who Must Sign Form 940?
The following persons are authorized to sign the return for
each type of business entity.
Sole proprietorship—The individual who owns the
•
business.
Partnership (including an LLC treated as a
•
partnership) or unincorporated organization—A
responsible and duly authorized partner, member, or
officer having knowledge of its affairs.
You’re not required to provide the information requested
on a form that is subject to the Paperwork Reduction Act
unless the form displays a valid OMB control number.
Books or records relating to a form or its instructions must
be retained as long as their contents may become
Corporation (including an LLC treated as a
•
corporation)—The president, vice president, or other
principal officer duly authorized to sign.
material in the administration of any Internal Revenue law.
Single-member LLC treated as a disregarded entity
•
for federal income tax purposes—The owner of the
Generally, tax returns and return information are
confidential, as required by section 6103. However,
section 6103 allows or requires the IRS to disclose or give
the information shown on your tax return to others as
described in the Code. For example, we may disclose your
tax information to the Department of Justice for civil and
criminal litigation, and to cities, states, the District of
Columbia, and U.S. commonwealths and territories to
administer their tax laws. We may also disclose this
information to other countries under a tax treaty, to federal
and state agencies to enforce federal nontax criminal
laws, or to federal law enforcement and intelligence
agencies to combat terrorism.
LLC or a principal officer duly authorized to sign.
Trust or estate—The fiduciary.
•
Form 940 may also be signed by a duly authorized
agent of the taxpayer if a valid power of attorney or
reporting agent authorization (Form 8655) has been filed.
Alternative signature method. Corporate officers or
duly authorized agents may sign Form 940 by rubber
stamp, mechanical device, or computer software program.
For details and required documentation, see Rev. Proc.
2005-39, 2005-28 I.R.B. 82, available at IRS.gov/irb/
Paid preparers. A paid preparer must sign Form 940 and
provide the information in the Paid Preparer Use Only
section of Part 7 if the preparer was paid to prepare Form
940 and isn't an employee of the filing entity. Paid
preparers must sign paper returns with a manual
signature. The preparer must give you a copy of the return
in addition to the copy to be filed with the IRS.
If you’re a paid preparer, enter your Preparer Tax
Identification Number (PTIN) in the space provided.
Include your complete address. If you work for a firm,
If you have comments concerning the accuracy of
these time estimates or suggestions for making these
forms simpler, we would be happy to hear from you. You
you can send your comments to Internal Revenue Service,
Tax Forms and Publications Division, 1111 Constitution
Ave. NW, IR-6526, Washington, DC 20224. Don't send
earlier.
Instructions for Form 940 (2023)
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Estimated Average Times
The time needed to complete and file this form will vary depending on individual circumstances. The estimated average
time is:
Form
Recordkeeping
Preparing, copying, assembling, and sending
the form to the IRS
Schedule A (Form 940)
Worksheet (Form 940)
16 hr., 1 min.
1 hr., 41 min.
15 min.
21 min.
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Instructions for Form 940 (2023)