Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return
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. Do not collect or deduct FUTA tax from your employees' wages.
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.
Other Items You May Find Useful:
Publication 15, (Circular E), Employer's Tax Guide
Publication 542, Corporations
Comment on Form 940
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