An employer needs to file form 940 to Federal and State Tax Authorities for paying Unemployment taxes under the Federal Unemployment Tax Act (FUTA). It is an annual tax form, which only businesses are liable to pay whereas there is no deductions of taxes are made from employee’s wages. The current tax rate is set to 6% of first $7000 paid to the employee, and this tax amount is used to compensate workers who have lost their jobs. Due dates to file 940 is January 31 by mail and February 10 for e filing.
If you have any questions or queries filing form 940 feel free to contact us at our Payroll Customer Service Number 1.855.738.2784.