What is the Form 940?
The Form 940 is a tax form used by employers in the United States to report and pay the Federal Unemployment Tax Act (FUTA) taxes. This form is filed annually and calculates the amount of FUTA tax owed, which funds unemployment compensation for workers who lose their jobs. Employers must file Form 940 if they meet certain requirements, such as paying wages to employees and meeting the minimum threshold for FUTA tax liability. The form includes information about taxable wages, any credits or adjustments, and the total tax due.