IRS Form 940 is used by employers to report their annual taxes required under the Federal Unemployment Tax Act. Many employers are also required to pay a state unemployment tax. Both federal and state unemployment taxes are used to pay unemployment compensation to people who have lost their jobs.
Not all employers are required to pay the federal unemployment tax. Employers may be exempt from this tax if the total wages paid for the year are below a given threshold. Many 501(c)(3) organizations are also exempt from paying this tax. It's important to read the instructions carefully before filing this form, especially when trying to determine whether or not an employer is exempt.
When searching online for IRS forms, it's essential to confirm that the form is coming from the official IRS website. Forms available on other websites may not be the most current version, and the instructions may not be up to date. Tax laws are complex and can change from year to year. The IRS never charges a fee to download and print forms. If a website asks for a fee to access an IRS form, then it is not the official IRS website.Learn more about Taxes