Filing Form 940, the Employer’s Annual Federal Unemployment (FUTA) Tax Return, is a crucial responsibility for employers in the United States. This form reports your annual FUTA tax liability, which funds unemployment compensation for workers who have lost their jobs. Based on your location and whether you are submitting a form with payment or without payment, the IRS provides specific mailing addresses. To ensure timely and accurate processing by the Internal Revenue Service (IRS), it’s important to fill out the form correctly and know where to mail Form 940.
Unlike federal income tax, FUTA tax is solely the responsibility of the employer; employees do not contribute to this tax. The standard FUTA tax rate is 6.0% on the first $7,000 of each employee’s wages. Moreover, upon paying the FUTA tax on time, employers may receive a credit of up to 5.4%, reducing the effective rate to 0.6% only.
Did you know?
If you paid wages in a state that owes money to the federal government for unemployment funds (called a credit reduction state), you’ll owe more federal unemployment tax. The amount you owe goes up based on that state’s reduction rate.
Mailing Addresses for Form 940
The IRS provides specific mailing addresses for Form 940 based on your location and whether you are submitting a payment. Here’s a breakdown:
Without a Payment
| States/Locations | Mailing Address |
| Wisconsin, West Virginia, Virginia, Vermont, Tennessee, South Carolina, Rhode Island, Pennsylvania, Ohio, North Carolina, New York, New Jersey, New Hampshire, Michigan, Massachusetts, Maryland, Maine, Kentucky, Indiana, Illinois, Georgia, District of Columbia, Delaware, Connecticut | Department of the Treasury<br>Internal Revenue Service<br>Kansas City, MO 64999-0046 |
| Wyoming, Washington, Utah, Texas, South Dakota, Oregon, Oklahoma, North Dakota, New Mexico, Nevada, Nebraska, Montana, Missouri, Mississippi, Minnesota, Louisiana, Kansas, Iowa, Idaho, Hawaii, Florida, Colorado, California, Arkansas, Arizona, Alaska, Alabama | Department of the Treasury<br>Internal Revenue Service<br>Ogden, UT 84201-0046 |
| U.S. Virgin Islands, Puerto Rico | Internal Revenue Service<br>P.O. Box 409101<br>Ogden, UT 84409 |
| If not listed above | Internal Revenue Service<br>P.O. Box 409101<br>Ogden, UT 84409 |
Looking for professional Tax and Accounting individuals?
AcctRight offers tailored Accounting & Tax solutions for individuals and entrepreneurs. Get a no obligation quotation today.
With a Payment
| States/Locations | Mailing Address |
| Wisconsin, West Virginia, Virginia, Vermont, Tennessee, South Carolina, Rhode Island, Pennsylvania, Ohio, North Carolina, New York, New Jersey, New Hampshire, Michigan, Massachusetts, Maryland, Maine, Kentucky, Indiana, Illinois, Georgia, District of Columbia, Delaware, Connecticut | Internal Revenue Service<br>P.O. Box 806531<br>Cincinnati, OH 45280-6531 |
| Wyoming, Washington, Utah, Texas, South Dakota, Oregon, Oklahoma, North Dakota, New Mexico, Nevada, Nebraska, Montana, Missouri, Mississippi, Minnesota, Louisiana, Kansas, Iowa, Idaho, Hawaii, Florida, Colorado, California, Arkansas, Arizona, Alaska, Alabama | Internal Revenue Service<br>P.O. Box 932000<br>Louisville, KY 40293-2000 |
| Puerto Rico, U.S. Virgin Islands | Internal Revenue Service<br>P.O. Box 932000<br>Louisville, KY 40293-2000 |
| If not listed above | Internal Revenue Service<br>P.O. Box 932000<br>Louisville, KY 40293-2000 |
Note: If you’re using a private delivery service (PDS), refer to the IRS’s PDS street addresses for the appropriate delivery location.
How to Fill Out Form 940
Now you can e-file (electronically file) your tax return forms. It’s secure, accurate, time-saving, and best of all – acknowledgements are received within 24 hours. You may do this by hiring a tax professional or do it yourself, and doing it yourself requires the purchase of an IRS-approved software.
- Employer Identification Number (EIN): Enter your unique EIN issued by the IRS.
- Business Information: Provide your legal business name, trade name (if applicable), and address.
- FUTA Taxable Wages: Report the total wages subject to FUTA tax.
- Adjustments: Include any adjustments for state unemployment tax credits.
- Tax Calculation: Calculate your total FUTA tax liability.
- Payments: Report any FUTA tax deposits made during the year.
- Balance Due or Overpayment: Determine if you owe additional tax or are due a refund.
- Signature: Sign and date the form to certify its accuracy.
For detailed instructions, refer to the IRS Form 940 Instructions.
Key Details About Form 940
- Due Date: Typically, Form 940 is due by January 31st following the end of the calendar year.
- Payment Requirements: Employers must make quarterly deposits if their FUTA tax liability exceeds $500 in a year.
- Amended Returns: To amend a previously filed Form 940, check the “Amended Return” box at the top of the form.
How Tax Solutions Can Assist in Filing Taxes and Saving Money
Utilizing professional tax services can streamline the filing process and potentially reduce tax liabilities. Here’s how:
- Expert Guidance: Tax laws tend to keep changing, thus requiring extreme vigilance. Tax professionals not only stay updated but also know how to save while adhering to the laws, allowing them to provide expert guidance, ultimately resulting in savings.
- Maximizing Credits: They can help identify and apply for all eligible credits, such as the state unemployment tax credit, to minimise your FUTA tax liability.
- Accurate Filing: Professionals ensure that all forms are completed correctly, reducing the risk of errors and penalties.
- Time Savings: Outsourcing tax preparation allows you to focus on running your business while experts handle your tax obligations.
Individuals and businesses looking for assistance with accounting services, tax preparation, and even Fractional CFO Services may consider a trusted accountancy firm such as AcctRight. We can not only help you navigate the complexities of tax laws while ensuring compliance, but we can also provide fractional CFO services. These CFO services include cash flow management, budgeting, forecasting, and long-term financial planning. Whether looking for managing finance, taxation, or financial planning, AcctRight is there to help you manage it all professionally.
Disclaimer: This blog is only for informational purposes.
