Form 940 Checklist: FUTA Tax Return
Payroll and CPA Resource
File Form 940 (Employer's Annual Federal Unemployment Tax Return) with our checklist. For payroll administrators, CPAs, and employers. Gather FUTA wage totals, state unemployment contributions, deposit records, and credit reduction state information so annual FUTA reporting is accurate and on time. Confirm current wage base and credit rules. Not tax advice.
Key Benefits
Calculate FUTA taxable wages correctly
Apply state unemployment tax credits
Track FUTA deposits during the year
Handle credit reduction states
Meet the annual Form 940 deadline
Professional employer tax compliance workflow
Common Use Cases
Employers filing annual FUTA returnsPayroll bureaus preparing Form 940CPAs reconciling FUTA and SUTAMulti-state employers tracking creditsNew employers filing first Form 940Year-end payroll tax packages
Frequently Asked Questions
What is Form 940?
Form 940 reports Federal Unemployment Tax Act (FUTA) tax. Employers generally pay FUTA on employee wages up to an annual wage base and may claim a credit for state unemployment taxes paid.
How does the state unemployment credit work?
Timely state unemployment (SUTA) contributions can reduce FUTA tax through a credit, subject to credit reduction if a state has outstanding federal advances. Confirm the current IRS credit reduction list.
When is Form 940 due?
Form 940 is generally due January 31 for the prior calendar year (with possible extensions or deposit-related timing rules). Confirm the current IRS due date for your situation.
Do I need Form 940 if I outsource payroll?
The employer of record is still responsible for FUTA. Your payroll provider may prepare Form 940, but you should retain wage and deposit support.
Checklist
Wages
Annual FUTA taxable wages by employee (wage base applied)
Required
Exclude exempt wages per current Form 940 instructions.
Year-end payroll summary reconciling to Form 941 totals
Required
FUTA wages should be consistent with payroll records.
Credits
State unemployment tax payments and proof of timely payment
Required
Needed to claim the maximum FUTA credit.
Identify credit reduction states where you paid wages
Required
Use the current IRS credit reduction list for the tax year.
Deposits
FUTA tax deposit records for the year (EFTPS)
Required
Deposit when liability exceeds thresholds during the year.
States
Multi-state wage allocation if employees worked in multiple states
Affects Schedule A when required.
Filing
Completed Form 940 (and Schedule A if required)
Required
Sign, date, and retain a copy with workpapers.
Tax History
Prior-year Form 940 for comparison
Required
Helps spot wage base and credit anomalies.