FUTA Reporting

In general, employers pay their unemployment tax quarterly and file an annual tax return. Use Form 940 or Form 940-EZ, Employer's Annual Federal Unemployment (FUTA) Tax Return, to report FUTA tax. File Form 940 or Form 940-EZ by January 31. However, if you deposited all FUTA tax when due, you may file on or before February 10. The IRS will mail a preaddressed Form 940 or Form 940-EZ to you if you filed a return for the year before. If you do not receive Form 940 or Form 940-EZ, you can get a form by calling 1-800-TAX-FORM (1-800-829-3676).

Form 940-EZ requirements.

You may be able to use Form 940-EZ instead of Form 940 if: (a) you paid unemployment taxes (contributions) to only one state, (b) you paid state unemployment taxes by the due date of Form 940 or Form 940-EZ, (c) all wages that were taxable for FUTA tax purposes were also taxable for your state's unemployment tax, and (d) you did not make contributions to a credit reduction state. For example, if you paid wages to corporate officers (these wages are subject to FUTA tax) in a state that exempts these wages from its unemployment taxes, you cannot use Form 940-EZ.

Household Employees

If you did not report employment taxes for household employees on Form 941 or Form 943, report FUTA tax for these employees on Schedule H (Form 1040), Household Employment Taxes. See Publication 926 for more information.