What is Form 940?
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Last modified 5/25/2020 8:07:53 AM EST
Form 940 is used by employers to file their Annual Federal Unemployment (FUTA) Tax for every year. If you have employees, you must report and pay unemployment taxes.
The FUTA tax applies to the first $7,000 you pay to each employee during a calendar year after subtracting any payments exempt from FUTA tax.
FUTA tax must not be deducted from employees' wages.