Missing a Form 940 deadline can lead to penalties, interest, and unnecessary stress. As the Form 940 Deadline 2026 approaches, it helps to know exactly who must file, when FUTA deposits are due, and how to stay compliant from quarter to quarter.
Form 940 is the annual federal return employers use to report and reconcile Federal Unemployment Tax Act (FUTA) tax. If you want a broader view of upcoming filing dates, see BoomTax’s 2026 deadline guide for 1095, 1099, W-2, 940, and 941 forms.
What is Form 940 and who must file?
FUTA provides funds for paying unemployment compensation to workers who lose their jobs. Most employers that meet either of the following tests must pay FUTA tax and file Form 940:
- You paid $1,500 or more in wages in any calendar quarter during the current or preceding year.
- You had at least one employee for some part of a day in 20 or more different weeks during the current or preceding year.
There are also special rules for certain employers. These exceptions matter, so it’s important to confirm which category applies to your business.
- Agricultural employers generally file Form 940 if they paid $20,000 or more in cash wages in any calendar quarter or had 10 or more farm workers during some part of a day in 20 or more different weeks in the current or preceding year.
- Household employers typically report FUTA on Schedule H (Form 1040), not on Form 940.
- State and local governments and most 501(c)(3) organizations are generally exempt from FUTA.
If you are unsure, review the IRS Form 940 page and the current instructions, or consult a qualified tax professional. This is especially important if you operate in multiple states or have a mix of employee types.
Key dates and how the 2026 due date works
The annual filing due date for 2025 FUTA is January 31, 2026. Because January 31, 2026 falls on a Saturday, the practical filing date moves to the next business day: Monday, February 2, 2026.
If you deposited all FUTA tax on time during 2025, you get additional time to file. In that case, you may file by February 10, 2026.
Quarterly FUTA deposit timing
FUTA deposits are required only when your cumulative FUTA tax exceeds $500 as of the end of a quarter. If your cumulative FUTA tax is $500 or less, carry it forward to the next quarter.
If your year-end total is $500 or less, you may pay it with your return by the filing deadline. Required deposits are made electronically through IRS federal tax deposit guidance and EFTPS.
- Q1 (Jan–Mar): If cumulative FUTA exceeds $500 by March 31, deposit by April 30.
- Q2 (Apr–Jun): If cumulative FUTA exceeds $500 by June 30, deposit by July 31.
- Q3 (Jul–Sep): If cumulative FUTA exceeds $500 by September 30, deposit by October 31.
- Q4 (Oct–Dec): If cumulative FUTA exceeds $500 by December 31, deposit by January 31 of the following year, which moves to the next business day if it falls on a weekend or holiday.
If a deposit due date falls on a weekend or federal holiday, the deposit is timely if made on the next business day. You can also review general IRS employment tax rules on the IRS employment taxes page.
How FUTA tax is calculated
The FUTA tax rate is 6.0% on the first $7,000 of wages paid to each employee during the year. That first $7,000 is known as the FUTA wage base.
Employers generally receive a credit of up to 5.4% for timely state unemployment (SUTA) contributions. For most employers, that reduces the net FUTA rate to 0.6%.
However, two important nuances can change your net rate:
- Credit reduction states: If a state has outstanding federal unemployment loans, the FUTA credit for employers in that state is reduced, which increases the net FUTA rate. The IRS publishes a list of credit reduction states each year.
- State coverage differences: If certain wages are not subject to SUTA, the FUTA credit can be limited on those wages.
Example 1: Small employer with no credit reduction
Assume four employees each earn $7,000 or more in 2025. Total FUTA wage base: 4 × $7,000 = $28,000.
- Gross FUTA at 6.0%: $1,680
- Full SUTA credit (5.4%): $1,512
- Net FUTA: $168
Because the total is under $500, no quarterly deposit is required. You can pay the $168 with Form 940 by the due date.
Example 2: Employer in a 0.3% credit reduction state
Using the same $28,000 FUTA wage base, a 0.3% credit reduction adds $84 of FUTA (0.3% × $28,000). Net FUTA becomes $168 + $84 = $252.
That amount is still under $500, so you may pay it with the return unless cumulative liability exceeds $500 by a later quarter in larger scenarios.
Example 3: Deposit threshold crossed mid-year
Suppose your net FUTA reaches $620 by June 30. You must deposit by July 31.
If your liability never exceeds $500 by any quarter-end, you can pay with the annual return instead.
Filing steps and practical tips
- Confirm you must file: Apply the eligibility tests and the special rules for agricultural and household employment.
- Verify your data: Reconcile payroll records, FUTA wages, and state unemployment contributions. Confirm your EIN and legal name match IRS records.
- Check the credit reduction list: If you paid wages in any credit reduction state, compute additional FUTA and complete Schedule A (Form 940).
- Calculate FUTA: Apply the 6.0% rate to the first $7,000 per employee, subtract allowable state credits, and track quarterly cumulative totals for the $500 deposit rule.
- Deposit on time via EFTPS: Set calendar reminders for April 30, July 31, October 31, and late January or early February as applicable.
- E-file the return: Electronic filing reduces math errors and provides faster acknowledgments. If you file on paper, use the correct IRS address for your state and include payment vouchers if required.
- Reconcile year-end forms: Ensure wages on Form 940 align logically with Forms W-2/W-3 and, when applicable, with Forms 941 or 944.
- Keep records: Retain payroll and tax records for at least four years after the due date or payment date, whichever is later.
Action tip: Create a “FUTA folder” — digital or physical — containing each quarter’s FUTA wage reports, state unemployment payment confirmations, and a running tally of cumulative FUTA tax. This makes year-end filing much easier and supports audits or notices.
If your business also handles year-end information returns, BoomTax offers tools to e-file Form 1099 online and streamline related filing tasks.
Common pitfalls to avoid
- Forgetting the $500 rule: If your cumulative FUTA exceeds $500 at a quarter’s end, you must deposit by the end of the next month. Do not wait until year-end.
- Ignoring multi-state requirements: If you paid wages in more than one state or in any credit reduction state, Schedule A (Form 940) may be required.
- Misclassifying workers: Independent contractors generally are not subject to FUTA; employees are. Confirm worker status to avoid back taxes and penalties.
- Overlooking state credits: Not taking allowable SUTA credits overstates FUTA, while taking credits you are not entitled to understates FUTA. Match your state filings and payments carefully.
- Missing the weekend or holiday rule: When a due date lands on a non-business day, file or deposit by the next business day to avoid penalties.
If you do miss a deadline, act quickly. Penalties and interest may apply, and if you need to correct a filed return, use Form 940-X to amend.
Quick 2026 calendar and checklist
- February 2, 2026: File Form 940 if you still owe FUTA. This date moved from January 31 because of the weekend.
- February 10, 2026: Alternative filing date if all 2025 FUTA deposits were made on time.
- Quarterly deposit checkpoints for 2025: April 30, July 31, October 31, and February 2, 2026 for Q4 if over $500.
- Before filing: Confirm credit reduction status, complete Schedule A if required, and reconcile to payroll records.
Practical examples at a glance
Seasonal employer
A landscaping company hires most workers in Q2–Q3. FUTA taxable wages accumulate quickly in those quarters, often pushing cumulative liability over $500 by June 30.
That means the business should plan ahead to deposit by July 31.
Remote team in multiple states
A small tech firm employs workers in three states, one of which is a credit reduction state. The employer must complete Schedule A to compute the additional FUTA attributed to that state and include it with Form 940.
Closing a business
If you stop paying wages, file a final Form 940 for that year and check the “final return” box. Pay any remaining FUTA with the return and keep records for at least four years.
Frequently asked questions
When is the Form 940 Deadline 2026?
Form 940 for 2025 is due January 31, 2026, but because that date is a Saturday, the return is due Monday, February 2, 2026. If all FUTA deposits were made on time, you may file by February 10, 2026.
Do I have to deposit FUTA if I owe less than $500?
No. Carry the amount to the next quarter. If your total FUTA for the year is $500 or less, you can pay it with your annual return by the due date.
What if I missed a deposit or filing deadline?
Penalties and interest may apply. Deposit or file as soon as possible to limit charges. If you discover errors after filing, use Form 940-X to amend.
How do I know if my state is a credit reduction state?
The IRS publishes the annual list near year-end. Check the current instructions for Form 940 and IRS updates before filing.
How do I pay FUTA?
Make required deposits through EFTPS. If your annual FUTA is $500 or less, you can include payment with Form 940 by check with voucher or electronically, following IRS instructions.
Planning ahead for the Form 940 Deadline 2026
Create reminders for quarterly deposit checkpoints, monitor cumulative FUTA during the year, and verify state unemployment payments as you go. Even a brief monthly review can prevent last-minute surprises and help you file accurately and on time for the Form 940 Deadline 2026.
It also helps to stay aware of related compliance risks. For example, if your business files information returns too, review BoomTax’s guide to 1099 penalties and explore BoomTax solutions for electronic filing.
Official resources
- IRS Form 940 page
- IRS employment taxes page
- IRS federal tax deposit FAQs
- EFTPS
- Instructions for Form 940
- Amended FUTA returns (Form 940-X)
Need help with year-end filing? BoomTax makes it easier to manage tax form deadlines, e-file required forms, and stay organized across federal and state reporting. Explore BoomTax’s filing solutions to simplify your compliance workflow.
Disclaimer: This article is for educational purposes only and does not constitute tax or legal advice. Consult the IRS instructions or a qualified professional for guidance tailored to your situation.
BoomTax, The Boom Post, and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors prior to engaging in any transaction.
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