Form 940 is generally available with software support in late December with the 4th quarter release. Also known as the Employer’s Annual Federal Unemployment Tax Return, this form is an essential document for most employers. It is used to report FUTA tax, or the tax established under the Federal Unemployment Tax Act.
Form 940 is lengthy, and most employers need time to gather the information necessary to finish it. That’s why we recommend preparing for tax season as early as possible. Late December is the earliest time at which an employer can prepare the form.
Why is Form 940 Available in December?
Form 940 is due January 31st. This leaves employers with around one month to prepare and file the form. So, when will Form 940 available? The document is accessible toward the end of December. Employers can’t file the form any earlier. You’ll need to include 4th quarter tax liability, and you won’t have this information until December 31. By releasing the form in late December, the IRS allows employers to fill out and file the form directly after this last piece of information becomes available.
Tips for Filing Form 940
To fill out this form, employers will need to include information about tax liability for each quarter, total payments to all employees, payments exempt from FUTA tax, and other information about adjustments. This form is information heavy, which means you’ll need to dip into your payroll and accounting records to fill it out accurately. If you don’t have a system that allows you to do this, we recommend AMS Payroll. For less complicated business accounting and filing needs, you can also consider our Forms Filer Plus. Our software can help calculate, track, and deploy information relevant to form 940, as well as other federal forms.