Form 940 reports an employer\u2019s 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.
\nThis 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.<\/p>\n
Online 940 filing gives you faster, more reliable results than mailing a paper return. Here\u2019s a more detailed look at the reasoning behind choosing e-filing over paper filing:<\/p>\n
1. Faster IRS acknowledgment<\/strong><\/p>\n 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.<\/p>\n 2. Fewer errors<\/strong><\/p>\n 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.<\/p>\n 3. Lower preparation costs<\/strong><\/p>\n You don\u2019t pay for postage or certified mail, and you spend less time on manual preparation, printing, and assembling forms.<\/p>\n 4. Secure recordkeeping<\/strong><\/p>\n 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.<\/p>\n Deadline protection<\/strong><\/p>\n If you transmit Form 940 on time and the IRS rejects it, you will still have a 10-calendar-day \u201cTransmission Perfection Period\u201d 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.<\/p>\n Have these ready before you e-file Form 940:<\/p>\n Expert Tip:<\/strong> Keep proof of each FUTA deposit in case the IRS asks for documentation later.<\/p>\n You can easily file Form 940 through the IRS 94x Modernized e-File (MeF) system with Tax1099. Here\u2019s how:<\/p>\n Step 1:<\/strong> Create an account or sign in if you already have one: No installs just sign in with your email.<\/p>\n Step 2:<\/strong> Add the employer profile: With your EIN, legal name, and address, set up the employer profile once, and you\u2019ll be able to reuse it every year.<\/p>\n Step 3:<\/strong> Upload payroll information: CSV\/Excel uploads work, and you can connect a supported payroll system.<\/p>\n Step 4:<\/strong> Review FUTA calculations: You\u2019ll see FUTA-taxable wages and deposits if you paid wages in a credit-reduction state, Schedule A appears automatically.<\/p>\n Step 5:<\/strong> Select your payment method: You can choose between these payment options<\/p>\n Step 6:<\/strong> 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.<\/p>\n Step 7:<\/strong> Check and keep the IRS acknowledgment: The IRS acknowledgment and a copy of the filed return stay in your dashboard for download anytime.<\/p>\n 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\u2019s $500 or less, carry it to the next quarter.<\/p>\n Here\u2019s a table for easy reference with Form\u202f940 deposit dates (FUTA deadlines 2025) and relevant actions:<\/p>\n 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.<\/p>\n A few follow-up actions can help you maintain accurate FUTA records after filing:<\/p>\n 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.<\/p>\n 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.<\/p>\n 3. Manage refunds or credits you can request a refund of any overpayment or apply it to the next tax year.<\/p>\n 4. Even before any rejected forms come your way, if you identify errors, file an amended Form 940 as early as possible.<\/p>\n Here are some common errors and how you can resolve them:<\/p>\n 1. Scenario 1:<\/strong> FUTA liability reaches $550 in Q2<\/p>\n What to Do: Make a timely deposit of the amount (July 31 is the Q2 due date)<\/p>\n 2. Scenario 2:<\/strong> Wages reported in the U.S. Virgin Islands<\/p>\n What to Do: Attach Schedule A (Form 940); credit reduction applies, so additional FUTA is due.<\/p>\n 3. Scenario 3:<\/strong> Annual liability is $500 or less<\/p>\n 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).<\/p>\n 4. Scenario 4:<\/strong> Return is rejected for a math issue<\/p>\n What to Do: Fix and retransmit the form within 10 days.<\/p>\n 5. Scenario 5:<\/strong> Additional wages found after filing<\/p>\n 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.<\/p>\n 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.<\/p>\n Yes. The IRS accepts amended filings through MeF.<\/p>\n 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.<\/p>\n The FUTA rate is 6 percent on the first $7,000 of wages per employee, reduced by state unemployment credits.<\/p>\n Tax1099 queues the return and preserves the original timestamp.<\/p>\n Keep the records for at least four years.<\/p>\n 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.<\/p>\n Close out your FUTA obligations with confidence sign in to Tax1099, upload your data, and e-file Form 940 securely before the deadline.<\/p>\nQuick Checklist Before Filing Form 940<\/h2>\n
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How to File Form 940 Electronically with Tax1099<\/h2>\n
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Key FUTA Dates And Deposit Rules<\/h2>\n
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\n \nKey Date<\/th>\n What You Do<\/th>\n<\/tr>\n<\/thead>\n \n April 30, 2025<\/td>\n Deposit Q1 FUTA if your cumulative liability is over $500.<\/td>\n<\/tr>\n \n July 31, 2025<\/td>\n Deposit Q2 FUTA if your cumulative liability is over $500.<\/td>\n<\/tr>\n \n October 31, 2025<\/td>\n Deposit Q3 FUTA if your cumulative liability is over $500.<\/td>\n<\/tr>\n \n February 2, 2026<\/td>\n Deposit Q4 FUTA if your cumulative liability (plus any undeposited amounts) is over $500. If you had credit-reduction wages, include the add-on with this Q4 deposit.<\/td>\n<\/tr>\n \n February 2, 2026<\/td>\n File Form 940 or pay with the return if your annual FUTA tax is $500 or less.<\/td>\n<\/tr>\n \n February 10, 2026<\/td>\n If you deposited all FUTA tax on time, you may file Form 940 by February 10.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Next Steps After Filing Form 940<\/h2>\n
Common Mistakes and Quick Fixes<\/h4>\n
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\n \nMistake<\/th>\n How To Fix It<\/th>\n<\/tr>\n<\/thead>\n \n Missing Schedule A for credit-reduction states<\/td>\n Attach Schedule A (Form 940), compute and pay the credit-reduction add-on, then retransmit.<\/td>\n<\/tr>\n \n EIN or business name mismatch<\/td>\n Correct the details to match your SS-4\/IRS records (name control) and retransmit within 10 days.<\/td>\n<\/tr>\n \n EFTPS deposit made too late<\/td>\n Use same-day wire via your bank using the Federal Tax Collection Service (FTCS). If the due date has already passed, pay as soon as possible to limit penalties and interest.<\/td>\n<\/tr>\n \n Reporting exempt wages as FUTA-taxable<\/td>\n Remove those amounts from FUTA-taxable wages, recalculate the return, and retransmit.<\/td>\n<\/tr>\n \n Filing under the wrong year<\/td>\n Delete the incorrect return and complete the 2025 Form 940.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Real-life Scenarios<\/h4>\n
FAQs<\/h2>\n
1. Is e-filing required for Form 940?<\/h5>\n
2. Can an amended Form 940 be e-filed?<\/h5>\n
3. Does the 10 return e-file rule apply to Form 940?<\/h5>\n
4. What is the FUTA tax rate?<\/h5>\n
5. What if the IRS MeF system is unavailable?<\/h5>\n
6. How long should FUTA records be kept?<\/h5>\n
The Bottom Line<\/h4>\n