Form 940 Employer Annual Federal Unemployment Video

Nearly every company files a Form 940, and this small business video minute gives you the basics on what it is and how to file.

IRS Form 940 is used to report an employer's annual federal unemployment tax. You need to file this tax form annually by January 31st of the next calendar year, or you could face hefty IRS penalties.

Video Transcript

Welcome to the SurePayroll Minute. I’m Michael Alter.

IRS Form 940 reports an employer’s Annual Federal Unemployment Tax liability to the IRS.

Almost every business is responsible for filing Form 940. You’re only exempt if you’re a household or agricultural employer, if you pay less than 1,500 a year in wages, or if you employ someone for less than 20 days each year.

IRS Form 940 is due to the IRS by January 31st of the next calendar year. For example, your 2008 IRS Form 940 is due by January 31, 2009.

Even though you only need to file Form 940 once a year, you need to calculate your Federal Unemployment Tax liability each quarter. If your liability is more than $500, you need to make quarterly deposits. If you don’t, you could face hefty government fines.

For the simple answer to small business issues, I’m Michael Alter, with your SurePayroll Minute.