How to File Form 940 Electronically Quickly & Securely

Form 940 reports an employer’s annual FUTA liability. If you have employees and pay FUTA tax, you must file Form 940 for your business. With the 2025 tax year approaching, e-filing gives you faster IRS processing and fewer errors than paper.
This guide explains why you should e-file Form 940, what you need to prepare before you start, how you can use the Tax1099 platform to submit 94x returns through IRS MeF, and the key FUTA deposit rules and due dates you need to follow.

Why E-File Form 940 Instead of Paper

Online 940 filing gives you faster, more reliable results than mailing a paper return. Here’s a more detailed look at the reasoning behind choosing e-filing over paper filing:

1. Faster IRS acknowledgment

When you e-file, you typically receive an IRS confirmation in less than 24 hours. With paper filing, you may wait weeks for the IRS to process your return.

2. Fewer errors

On most e-file platforms, the system validates your EIN, flags math errors, and highlights missing or inconsistent entries so you can fix them before you submit and reduce CP error notices.

3. Lower preparation costs

You don’t pay for postage or certified mail, and you spend less time on manual preparation, printing, and assembling forms.

4. Secure recordkeeping

When you e-file, the platform encrypts your data during transmission. You keep a digital copy of the filed return and the IRS acknowledgment in your account dashboard for at least four years.

Deadline protection

If you transmit Form 940 on time and the IRS rejects it, you will still have a 10-calendar-day “Transmission Perfection Period” to correct your form and retransmit it. The electronic postmark counts toward filing on time, as long as you fix and resend the return within that period.

Quick Checklist Before Filing Form 940

Have these ready before you e-file Form 940:

• Employer details: EIN, legal name, trade name (if any), and mailing address
• Payroll and FUTA wages: Total 2025 wages and the portion subject to FUTA; only the first $7,000 per employee is FUTA-taxable pull that breakout and your FUTA deposit receipts
• State unemployment information: Your SUTA account numbers and state wage data (For 2025, California and the U.S. Virgin Islands are FUTA credit-reduction jurisdictions. If you paid wages there, complete Schedule A (Form 940) and compute the add-on.)
• Banking information: Routing and account numbers if you’ll permit an electronic funds withdrawal with the return, or your EFTPS credentials if you’ll pay separately.
• Electronic signature: A 94x Online Signature PIN or a signed Form 8879-EMP (e-file authorization) / Form 8453-EMP (declaration). Give it at least 45 days to receive a new 94x PIN.

Expert Tip: Keep proof of each FUTA deposit in case the IRS asks for documentation later.

How to File Form 940 Electronically with Tax1099

You can easily file Form 940 through the IRS 94x Modernized e-File (MeF) system with Tax1099. Here’s how:

Step 1: Create an account or sign in if you already have one: No installs just sign in with your email.

Step 2: Add the employer profile: With your EIN, legal name, and address, set up the employer profile once, and you’ll be able to reuse it every year.

Step 3: Upload payroll information: CSV/Excel uploads work, and you can connect a supported payroll system.

Step 4: Review FUTA calculations: You’ll see FUTA-taxable wages and deposits if you paid wages in a credit-reduction state, Schedule A appears automatically.

Step 5: Select your payment method: You can choose between these payment options

• Electronic Funds Withdrawal (ACH) with the return
• EFTPS
• “No payment due” when deposits cover the balance

Step 6: E-sign and transmit: You can use your 94x Online Signature PIN to authorize the return, or alternatively use Form 8879-EMP / 8453-EMP, and then submit.

Step 7: Check and keep the IRS acknowledgment: The IRS acknowledgment and a copy of the filed return stay in your dashboard for download anytime.

Key FUTA Dates And Deposit Rules

To follow the FUTA $500 rule, make a deposit when your cumulative FUTA liability for the quarter (including any carryover from prior quarters) is more than $500. If it’s $500 or less, carry it to the next quarter.

Here’s a table for easy reference with Form 940 deposit dates (FUTA deadlines 2025) and relevant actions:

Whenever due dates fall on a Saturday, Sunday, or legal holiday, the deadline shifts to the next business day. When using EFTPS, schedule by 8:00 p.m. Eastern Time the day before the due date.

Next Steps After Filing Form 940

A few follow-up actions can help you maintain accurate FUTA records after filing:

1. Save the IRS acknowledgment and the filed return PDF for at least four years after the due date or after the tax is paid.

2. If the IRS rejects your return and you transmitted on time, you usually have 10 calendar days to correct and retransmit. So, fix errors quickly.

3. Manage refunds or credits you can request a refund of any overpayment or apply it to the next tax year.

4. Even before any rejected forms come your way, if you identify errors, file an amended Form 940 as early as possible.

Common Mistakes and Quick Fixes

Here are some common errors and how you can resolve them:

Real-life Scenarios

1. Scenario 1: FUTA liability reaches $550 in Q2

What to Do: Make a timely deposit of the amount (July 31 is the Q2 due date)

2. Scenario 2: Wages reported in the U.S. Virgin Islands

What to Do: Attach Schedule A (Form 940); credit reduction applies, so additional FUTA is due.

3. Scenario 3: Annual liability is $500 or less

What to Do: No quarterly deposits are needed, so you can pay with Form 940 by February 2, 2026 (the 2025 Form 940 due date).

4. Scenario 4: Return is rejected for a math issue

What to Do: Fix and retransmit the form within 10 days.

5. Scenario 5: Additional wages found after filing

What to Do: As early as possible (preferably within 10 days of filing), file an amended Form 940 so your totals are updated and records straightened.

FAQs

1. Is e-filing required for Form 940?

Not for most employers Form 940 can still be filed on paper, although the IRS strongly encourages electronic filing, and certain filers (such as Certified Professional Employer Organizations (CPEOs) filing aggregate Forms 940) are generally required to e-file.

2. Can an amended Form 940 be e-filed?

Yes. The IRS accepts amended filings through MeF.

3. Does the 10 return e-file rule apply to Form 940?

The 10-return electronic filing rule applies to specified information returns (such as Forms 1099 and W-2), not directly to Form 940 (which is essentially an employment tax return). So, Form 940 is not to be counted when you are aggregating returns for the 10-return e-file rule. Most employers may still file Form 940 on paper unless another rule requires them to e-file, although the IRS strongly encourages electronic filing.

4. What is the FUTA tax rate?

The FUTA rate is 6 percent on the first $7,000 of wages per employee, reduced by state unemployment credits.

5. What if the IRS MeF system is unavailable?

Tax1099 queues the return and preserves the original timestamp.

6. How long should FUTA records be kept?

Keep the records for at least four years.

The Bottom Line

E-filing Form 940 can be simpler and less time-consuming than a paper chase. You can focus on keeping your wage totals and FUTA deposits accurate, while a trusted platform like Tax1099 can handle the mechanics submitting the return, storing IRS acknowledgments, and keeping prior-year filings in one place. Tax1099 can also help you cut down on manual errors and maintain clean FUTA records.

Close out your FUTA obligations with confidence sign in to Tax1099, upload your data, and e-file Form 940 securely before the deadline.

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