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Form 940 service
Annual FUTA · January 31 deadline

File your annual FUTA tax return. Form 940, with state credit applied.

Form 940 is the annual return for federal unemployment tax (FUTA). The 6% FUTA rate is reduced by up to 5.4% (to 0.6%) for state unemployment taxes paid on time. The return is due January 31 each year for the prior calendar year, or February 10 if all quarterly deposits were made on time. We prepare the return, apply the correct credit reduction (some states are credit-reduction states), reconcile against your EFTPS deposits, and e-file with the IRS.

All 50 states + DC 60-day money-back SOC 2 Type II
How it works

How we handle Form 940, end-to-end.

Form 940 is the annual return for federal unemployment tax (FUTA).

1

Payroll data collection

We pull payroll totals from your payroll provider (Gusto, ADP, QuickBooks, Rippling, Paychex) for the calendar year. FUTA applies to the first $7,000 of each employee's wages.

2

Credit reduction analysis

We confirm whether your state is a credit-reduction state for the year (the DOL publishes the list each November). Credit-reduction states require additional FUTA tax beyond the standard 0.6%.

3

Deposit reconciliation

We pull your EFTPS deposit history for the year and reconcile against the Form 940 calculation. Quarterly deposits are required when FUTA liability exceeds $500 in a quarter.

4

IRS e-file and acknowledgement

We e-file Form 940 through an IRS-authorized provider, receive acknowledgement within minutes, and forward the confirmation with the reconciled liability summary.

What we'll set up for you

A clean handoff, in four steps.

You give us the basics. We handle the state, the IRS, and the compliance clock so you can focus on the business.

01 · Name + Brand

A name that's actually available.

Real-time check against the state register, USPTO trademark database, and matching domains.

02 · State filing

Filed with the Secretary of State.

We submit your Articles, pay the state fee on your behalf, and return the stamped certificate.

03 · Federal IDs

EIN + the right tax setup.

Federal Employer ID with the IRS, plus state tax accounts when your business needs them.

04 · Stay compliant

Registered Agent + deadline tracking.

Your agent on file in every state, with every renewal and annual report tracked in one calendar.

Pricing

Transparent form 940 pricing.

State filing fees pass through at cost. No upsells.

With deposit management

$299
Form 940 + quarterly EFTPS deposits.

Standard plus we calculate and submit quarterly FUTA deposits through EFTPS, ensuring you stay above the $500 deposit threshold. Eliminates the most common Form 940 penalty (underpayment of deposits).

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Multi-state employer

$199
Form 940 + Schedule A for multi-state.

Standard plus Schedule A allocation for employers paying wages in multiple states. Required when wages are paid in two or more states. We pull state-by-state payroll data from your provider.

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FAQ

About the Form 940 Filing Service.

Who files Form 940?
Employers who paid $1,500 or more in wages in any calendar quarter, or had one or more employees for at least part of a day in any 20 different weeks of the year. Household employers and agricultural employers have different thresholds.
What is FUTA tax?
Federal unemployment tax. The base rate is 6% on the first $7,000 of each employee's annual wages, but employers get a credit of up to 5.4% for state unemployment taxes paid on time. Net rate for most employers is 0.6% (a maximum of $42 per employee per year).
What is a credit reduction state?
A state that owes the federal government for past unemployment loans. Employers in those states get a smaller credit and owe more FUTA tax. The DOL publishes the list each November for the current tax year. California and New York have been on the list in recent years.
When do I have to make FUTA deposits?
Quarterly, but only if your accumulated FUTA tax exceeds $500 at the end of a quarter. If under $500, you carry it forward to the next quarter or pay it with the Form 940 return.
What is the late-filing penalty?
5% of the unpaid tax per month, capped at 25%. The failure-to-pay penalty (0.5% per month) is separate. Both run on top of interest. Filing late is one of the most expensive payroll mistakes an employer can make.
Can I file Form 940 on paper?
Yes, but only if you have 10 or fewer Forms W-2 for the year. Above 10, the IRS requires e-file. We e-file all Form 940 returns regardless of W-2 count for speed and acknowledgement tracking.
Why File.Business

Premium compliance, no service-fee markup.

Trust you can verify

SOC 2 Type II audited platform. 220,000+ businesses served. 60-day money-back on service fees. State fees passed through at cost with no hidden markup. Explicit AUP on restricted industries.

A compliance partner, not a transaction

Most providers go quiet after checkout. We auto-track every annual report, registered agent renewal, and license deadline across your entities. The Business OS dashboard keeps your compliance score visible year-round.

Premium experience competitors cannot match

Premium positioning, transparent pricing, no service-fee markup on state or federal filings. Premium positioning, transparent pricing, no service-fee markup on state filings.

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