QuickBooks Form 940: Complete Guide to FUTA Tax Filing, E-File, Errors & Fixes

Every business that has employees in the United States is responsible for paying certain payroll taxes. One of the most important annual payroll tax forms is IRS Form 940, also known as the Federal Unemployment Tax Act (FUTA) return. This form reports the unemployment taxes that employers must pay to the IRS.

If you use QuickBooks Payroll, filing Form 940 becomes much easier. However, many users still face confusion while setting up, filing, or correcting Form 940. In this detailed guide, we’ll explain everything you need to know about QuickBooks Form 940, including filing steps, due dates, common errors, and how to fix them.

For instant assistance, you can call 844-753-8012 anytime.

What Is IRS Form 940?

Form 940 is an annual federal tax return used by employers to report and pay FUTA tax. This tax helps fund unemployment benefits for workers who lose their jobs.

Unlike Form 941 (which is filed quarterly), Form 940 is filed once per year.

FUTA Tax Basics

1. Paid only by employers
2. Employees do not contribute
3. Standard FUTA rate: 6%
4. Taxable wage base: $7,000 per employee

If you pay state unemployment tax on time, you may receive a credit of up to 5.4%, reducing the FUTA tax rate to 0.6%.

Who Must File Form 940?

You must file Form 940 if:

1. You paid $1,500 or more in wages during any quarter, OR
2. You had one or more employees for at least 20 weeks in the year

Most businesses with employees are required to file this form annually.

Form 940 Due Date

The standard due date for Form 940 is:

📅 January 31 of the following year

If you deposited all FUTA taxes on time, the IRS allows filing until February 10.

Missing deadlines can result in penalties and interest.

How QuickBooks Helps With Form 940

QuickBooks Payroll automatically:

1. Tracks FUTA wages
2. Calculates FUTA tax liability
3. Prepares Form 940
4. Allows E-File, E-Pay, or Print options

As long as payroll is set up correctly, QuickBooks ensures accurate Form 940 filing.

How to Prepare Form 940 in QuickBooks Desktop

Follow these steps:

1. Open QuickBooks Desktop
2. Go to Employees > Payroll Tax Forms & W-2s
3. Click Process Payroll Forms
4. Select Annual Form 940
5. Choose the correct tax year
6. Review employee wage and FUTA details
7. Click E-File, E-Pay, or Print

If you face errors during filing, contact support at 844-753-8012.

How to File Form 940 in QuickBooks Online

Steps for QuickBooks Online:

1. Log in to QuickBooks Online
2. Go to Taxes > Payroll Tax
3. Select Forms
4. Choose Form 940
5. Review calculations
6. Submit electronically

QuickBooks Online makes Form 940 filing fast and paperless.

E-File vs Print Form 940

E-File Benefits

1. Faster IRS processing
2. Fewer errors
3. Instant confirmation
4. Secure submission

Print & Mail

1. Takes longer
2. Higher risk of errors
3. No instant confirmation

Most experts recommend E-Filing Form 940 through QuickBooks.

Common Form 940 Errors in QuickBooks

Many users of XXX and other payroll platforms experience similar issues:

1. Incorrect FUTA Wage Calculation

Cause: Payroll setup errors or missing wage limits

2. State Unemployment Credit Issues

Cause: Late state tax payments

3. Form Not Showing in QuickBooks

Cause: Payroll subscription inactive or tax year mismatch

4. IRS Rejection

Cause: Incorrect EIN or business information

To resolve these issues quickly, call 844-753-8012.

How to Fix Form 940 Errors

If Form 940 has already been filed with errors:

1. Review payroll tax liability reports
2. Compare QuickBooks data with IRS notice
3. Correct payroll setup if needed
4. Re-file or submit corrected information
5. Pay any balance due immediately

Timely corrections help avoid penalties.

FUTA Tax Payment Schedule

FUTA Liability	Payment Due
Over $500	Quarterly
Under $500	Carry forward
Remaining balance	January 31

QuickBooks tracks this automatically.

Why Businesses Trust QuickBooks for Payroll Taxes

Businesses using platforms like XXX rely on QuickBooks because:

1. Automated tax calculations
2. IRS-compliant forms
3. Secure E-Filing
4. Error reduction
5. Time savings

Still, professional guidance is important when errors arise.

Best Practices for Form 940 Compliance

1. Run payroll accurately
2. Pay state unemployment taxes on time
3. Review FUTA liability reports
4. Keep payroll records organized
5. Reconcile payroll taxes regularly
6. File Form 940 before deadline

When Should You Contact Support?

You should seek help if:

1. Form 940 is missing in QuickBooks
2. FUTA tax is calculated incorrectly
3. IRS sends a penalty notice
4. E-File gets rejected
5. You are switching payroll systems

📞 Call 844-753-8012 for immediate assistance.

Conclusion

Form 940 plays a critical role in employer payroll tax compliance. With QuickBooks Payroll, preparing and filing FUTA taxes becomes easier, faster, and more accurate. However, errors in setup or late payments can still cause issues.

By understanding how Form 940 works and following best practices, businesses can avoid IRS penalties and remain compliant. If you ever face difficulties while filing or correcting Form 940, professional help is just a call away.

📞 844-753-8012