As a business owner, you may be required to file Form 940 for 2016 & 2017 to calculate your FUTA taxes. Keep in mind that FUTA taxes are made quarterly but Form 940 is only submitted once a year. Luckily, Quickbooks will do all of the work and prepare the Form 940 for 2016 for you and submits it to the IRS.
Am I Required to Pay FUTA Tax?
Yes, if you have employee and paid out wages more than $1,500 in the last 2 years in any quarter or if in the last 20 weeks of the year you had an employee. There are some exceptions out there if you have farmworkers and/or household employees.
Payroll Form 940 Video:
When is the 940 Due?
Form 940 is due January 31st each year. Although, the IRS gives you 10 extra days to file if you deposited all of your FUTA taxes on time to file Form 940 for 2016 & 2017. Keep in mind if Jan 31st falls on a weekend or a holiday Form 940 is due the next day assuming its a business day.
Its very important to remember that in addition to the annual FUTA on Form 940 you have to also make payments on unemployment taxes on an annual or quarterly basis. Unemployment taxes are paid by employers into government tax funds to provide payments to employees who are laid off or fired. Quickbooks payroll calculates Form 940 and submits as required to the IRS.
FUTA has to be paid on the last day of each month. Below is a FUTA payment schedule:
- Jan to Mar – pay on Apr 30th
- Apr to Jun – pay on Jul 31st
- Jul to Sep – pay on Oct 31st
- Oct to Dec – pay on Jan 31st of next yr
Quickbooks Payroll Online Free Trial ensures your payroll and Form 940 deadlines are met and filed on time and makes its an easy process to complete.