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Each year, every business with employees must file Form 940 to compute the amount of unemployment tax that must be paid on the federal level. This payroll tax is based on the first $7,000 of wages of each employee (including owners of S corporations who receive a salary for work performed for their businesses).
Use Schedule A (Form 940) to figure your annual Federal Unemployment Tax Act (FUTA) tax for states that have a credit reduction on wages that are subject to the unemployment compensation laws.
Use Form 940 to report your annual Federal Unemployment Tax Act (FUTA) tax. Together with state unemployment tax systems, the FUTA tax provides funds for paying unemployment compensation to workers who have lost their jobs.
Here's how: Go to the Taxes menu and select Payroll Tax. Click Annual Forms under the Forms section. You can also click View and Print Archived Forms if you were able to archive it before. Look for Employer's Annual Federal Unemployment Tax Return, then click 940. Make sure the period is set to 2020. Click View.
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