Learn how to troubleshoot and QuickBooks information about lines on Form 940.
Employers must use Form 940 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. Do not deduct or collect FUTA tax from your employees' wages.
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.
You must determine when to deposit your tax based on the amount of your quarterly 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 are not required to deposit your tax again until the cumulative amount is more than $500.
|If your undeposited FUTA tax is more than $500 on||Deposit your tax by|
|March 31||April 30|
|June 30||July 31|
|September 30||October 31|
|December 31||January 31|
For a detailed explanation of each line, refer to Instructions for Form 940.
- QuickBooks Desktop customers - if you use the worksheet while creating forms, also click the "View details about this form" link at the bottom of the worksheet for additional information.