Department of the Treasury
Internal Revenue Service
Employer’s Annual Federal Unemployment
(FUTA) Tax Return
Section references are to the Internal Revenue Code unless otherwise noted.
using the Electronic Federal Tax Payment System
(EFTPS) in 2002 if:
The total deposits of such taxes in 2000 were more
Who May Use Form 940-EZ
than $200,000 or
You were required to use EFTPS in 2001.
The following chart will lead you to the right form
If you are required to use EFTPS and fail to do so, you
may be subject to a 10% penalty. If you are not required
to use EFTPS, you may participate voluntarily. To enroll
Did you pay unemployment
in or get more information about EFTPS, call
contributions to only one
1-800-555-4477 or 1-800-945-8400. Also see
Depositing FUTA Tax on page 3.
FUTA rate. The (net) FUTA rate of .8% (FUTA tax rate
of 6.2% less state credit of 5.4%) is shown as .008 on
Did you pay all state
line 6 of Form 940-EZ. If you qualify to file Form 940-EZ,
you are entitled to the full 5.4% state credit regardless of
by January 31, 2002?**
your actual experience rate.
State unemployment information. You must contact
your state unemployment tax office to receive your state
Were all wages that were
reporting number, state experience rate, and details
taxable for FUTA tax also
about your state unemployment tax obligations.
taxable for your state’s
Third party designee. You can now allow an employee
or paid preparer to resolve certain tax issues with the
IRS. See Third party designee on page 4 for more
You may use
You must use
Photographs of Missing Children
The Internal Revenue Service is a proud partner with the
National Center for Missing and Exploited Children.
*Do not file Form 940-EZ if—
Photographs of missing children selected by the Center
● You owe FUTA tax only for household work in a private
may appear in instructions on pages that would otherwise
home. See Household employers on page 2.
be blank. You can help bring these children home by
● You are a successor employer claiming a credit for
looking at the photographs and calling 1-800-THE-LOST
state unemployment contributions paid by a prior
(1-800-843-5678) if you recognize a child.
employer. File Form 940.
Purpose of Form
**If you deposited all FUTA tax when due, you may
answer “Yes” if you paid all state unemployment
Use Form 940-EZ (or 940) to report your annual Federal
contributions by February 11, 2002.
Unemployment Tax Act (FUTA) tax. FUTA tax, together
Note: Get Form 940 and the 2001 Instructions for Form 940 by
with state unemployment systems, provides for payments
calling the IRS at 1-800-TAX-FORM (1-800-829-3676) or by visiting
of unemployment compensation to workers who have lost
the IRS Web Site at
their jobs. Most employers pay both Federal and state
unemployment taxes. Only the employer pays this tax.
Do not collect or deduct it from your employees’ wages.
Items To Note
The tax applies to the first $7,000 you pay each
employee in a year after subtracting any exempt
Electronic deposit requirement. You must make
payments. The $7,000 amount is the Federal wage base.
electronic deposits of all depository taxes (such as
employment tax, excise tax, and corporate income tax)
Your state wage base may be different.
Cat. No. 25947I