What is Form 940?

Last modified 3/31/2023 3:36:45 AM EST

IRS Form 940, Employer’s Annual Federal Unemployment Tax(FUTA), is used by employers to report their federal unemployment taxes. This tax provides benefits for the employees who have lost their jobs. 

The standard FUTA tax rate is 0.6% for the first $7,000 you pay to each employee during a calendar year.