As a small business owner, staying compliant with tax obligations is essential to avoid penalties and keep your finances in order. One of the key IRS forms you need to be aware of is Form 940, the Employer’s Annual Federal Unemployment (FUTA) Tax Return. Thankfully, QuickBooks Form 940 makes the process easier than ever — automating calculations, reducing manual errors, and simplifying the entire filing process.
In this 2025 guide, we’ll walk you through everything you need to know about Form 940 QuickBooks, from what it is, who must file it, to how QuickBooks 940 Form can streamline your filing experience.
If you ever face issues or need expert assistance, you can always contact QuickBooks Payroll Support at +1(866)500-0076 for professional help.
1. What is Form 940?
Form 940 is an annual IRS form used by employers to report and pay their Federal Unemployment Tax Act (FUTA) taxes. FUTA provides funds for unemployment compensation to workers who have lost their jobs.
Unlike Social Security and Medicare taxes, FUTA tax is paid only by employers, not employees. The standard FUTA tax rate is 6.0% on the first $7,000 of each employee’s annual wages. However, most employers receive a credit of up to 5.4% for paying state unemployment taxes, effectively reducing the FUTA tax rate to 0.6%.
In short, Form 940 ensures that your business contributes to unemployment insurance programs and remains compliant with federal regulations.
2. Who Needs to File Form 940?
You are required to file Form 940 if:
- You paid $1,500 or more in wages to employees in any calendar quarter during 2024 or 2025.
- You had one or more employees working for any part of a day in 20 or more weeks in the year.
Even if your business is seasonal or part-time, you must file if you meet these criteria. However, some employers — such as government organizations and nonprofits — may be exempt under certain conditions.
3. Why Use QuickBooks for Form 940 Filing?
Filing tax forms manually can be confusing and time-consuming. That’s where QuickBooks Form 940 comes in. QuickBooks simplifies the filing process by automating tax calculations, maintaining compliance with IRS rules, and providing e-filing options.
Here’s why Form 940 QuickBooks is a must for small businesses:
1. Automatic Tax Calculations
QuickBooks calculates your FUTA tax automatically based on your payroll data. It factors in state unemployment tax credits and ensures your totals match IRS requirements.
2. Built-in Tax Forms
QuickBooks includes pre-filled versions of Form 940, so you don’t need to manually enter employee wage details or tax amounts.
3. E-Filing Made Easy
With QuickBooks 940 Form, you can e-file directly to the IRS. QuickBooks tracks your filing status and confirms acceptance — saving you time and ensuring accuracy.
4. Error Reduction
Manual entry errors can lead to IRS notices or penalties. QuickBooks’ automated system reduces human error, ensuring your filings are correct and timely.
5. Audit Trail
QuickBooks maintains records of your payroll data, filings, and payments, providing an easy-to-access audit trail if needed later.
4. Preparing to File Form 940 in QuickBooks
Before filing your QuickBooks 940 Form, ensure that your payroll setup and employee data are accurate. Here’s a step-by-step preparation checklist:
Step 1: Update Payroll Information
Make sure all employee details, wage summaries, and tax rates are current in QuickBooks. If you use QuickBooks Payroll, the software automatically updates federal tax tables.
Step 2: Verify Employer Information
Check your business name, address, Employer Identification Number (EIN), and filing status. Errors here can delay processing.
Step 3: Review State Unemployment Tax Payments
Since FUTA tax is reduced by the amount you pay in state unemployment tax, ensure those payments are properly recorded.
Step 4: Confirm Payroll Liabilities
Reconcile your payroll tax liabilities to make sure your records match what’s in QuickBooks.
Step 5: Gather Payroll Reports
Generate the necessary payroll summaries and employee wage details for reference when reviewing your form.
5. How to File Form 940 in QuickBooks (Step-by-Step Guide)
Whether you use QuickBooks Desktop or QuickBooks Online Payroll, the process for filing Form 940 is simple and straightforward.
For QuickBooks Desktop:
- Open QuickBooks Desktop.
- Navigate to Employees → Payroll Tax Forms & W-2s → Process Payroll Forms.
- Select Annual Form 940 and click Create Form.
- Review your company and employee information.
- QuickBooks will auto-fill the form based on your payroll data.
- Carefully review the totals for FUTA wages and tax liability.
- Choose to Print for mailing or E-file directly through QuickBooks.
If e-filing, follow on-screen prompts to submit your return securely to the IRS.
For QuickBooks Online Payroll:
- Go to Taxes → Payroll Tax → Filings.
- Select Annual Forms → Form 940.
- QuickBooks Online will automatically generate your Form 940.
- Review and confirm all details.
- Click E-file and Pay to submit electronically.
QuickBooks will confirm submission and provide tracking information for your records.
6. Filing Deadlines for Form 940 (2025)
The due date for filing Form 940 for the 2024 tax year is January 31, 2025. However, if you’ve made all FUTA tax deposits on time throughout the year, you have until February 10, 2025, to file.
Filing after the deadline may result in penalties and interest, so set reminders to stay ahead of due dates.
7. Common Errors to Avoid When Filing Form 940
Even with QuickBooks automation, it’s wise to review your form carefully. Some common mistakes to avoid include:
- Using the wrong EIN or business name.
- Reporting incorrect taxable wages.
- Forgetting to claim state unemployment tax credits.
- Not updating QuickBooks payroll tax tables.
- Missing filing deadlines.
By reviewing your QuickBooks 940 Form thoroughly, you can prevent these issues and maintain accurate compliance records.
8. Correcting Errors on Form 940
If you discover a mistake after filing, don’t panic. You can file an amended Form 940. QuickBooks allows you to edit the form, correct the data, and re-submit. Make sure to check the box at the top of the form indicating it’s an amended return.
For complex cases, you can reach out to QuickBooks-certified professionals at +1(866)500-0076 for expert guidance.
9. Recordkeeping After Filing
After submitting Form 940 QuickBooks, keep copies of:
- The filed form (electronic or printed)
- FUTA tax payment receipts
- Payroll reports
- Employee wage summaries
The IRS recommends keeping these records for at least four years. QuickBooks automatically stores your payroll data and filing history, making it easy to retrieve when needed.
10. Benefits of Filing Form 940 with QuickBooks in 2025
The 2025 updates to QuickBooks have made filing even smoother. Here’s what small businesses can look forward to:
- Enhanced e-file tracking for IRS acknowledgment.
- Automatic FUTA rate adjustments for each state.
- Improved error-checking algorithms that detect inconsistencies before filing.
- Simplified user interface for QuickBooks Online Payroll users.
These enhancements ensure that even non-accountants can handle Form 940 filing confidently.
11. Expert Help for QuickBooks Form 940 Issues
If you face any issues such as incorrect FUTA calculations, form rejection, or payroll setup problems, don’t hesitate to reach professional support. The QuickBooks Payroll Help Desk is available at +1(866)500-0076, where experts can resolve filing and payroll-related errors quickly.
Conclusion
Filing your Form 940 doesn’t have to be a headache. With QuickBooks Form 940, small businesses can automate calculations, eliminate errors, and e-file directly to the IRS with confidence. Whether you’re a new business owner or managing multiple employees, QuickBooks simplifies every step of the process — ensuring compliance, accuracy, and peace of mind.
If you’re looking for expert guidance or troubleshooting help while managing Form 940 QuickBooks, visit QuickBooksupportnet — your trusted online destination for QuickBooks support and tax compliance solutions.
