I've got your back, @bvstone!
It's normal to show the 401(k) employer match on Form 940 Line 3, as this line reports the total payments made to all employees during the calendar year, regardless of whether the payments are taxable for FUTA. It's important to note that the payment method doesn't determine whether payments are wages. Wages can be paid hourly, daily, weekly, monthly, or yearly for piecework or as a percentage of profits.
For further reference, you can find the instructions for Form 940 on page 8 of this link: https://www.irs.gov/pub/irs-pdf/i940.pdf.
Additionally, we have an article that can help you understand the different federal payroll forms and how our payroll products support them: Understand federal forms and tax payments for 941, 944, 943, and 940.
Please let me know if you have further concerns regarding Form 940. I'd be glad to help.
