IRS Form 940 2025: Printable & Fillable PDF (Federal Unemployment Tax Return)

IRS Form 940 2025 – Are you an employer navigating federal unemployment taxes for the 2025 tax year? Understanding IRS Form 940 is essential for complying with the Federal Unemployment Tax Act (FUTA). This comprehensive guide covers everything you need to know about the IRS 940 Form 2025 printable and fillable PDF, including filing requirements, due dates, recent changes, and step-by-step instructions. Whether you’re a small business owner or handling payroll for a larger organization, this SEO-optimized article will help you file accurately and avoid penalties.

What is IRS Form 940?

IRS Form 940, also known as the Employer’s Annual Federal Unemployment (FUTA) Tax Return, is used by employers to report and pay their annual FUTA tax liability. This tax funds unemployment compensation programs for workers who have lost their jobs, working in tandem with state unemployment tax systems. Employers are solely responsible for paying FUTA taxes—it’s not deducted from employee wages.

The FUTA tax rate for 2025 remains at 6.0% on the first $7,000 of wages paid to each employee annually, after accounting for any exempt payments. Most employers qualify for a credit of up to 5.4% for timely state unemployment taxes paid, effectively reducing the net FUTA rate to 0.6%.

Who Needs to File Form 940 for 2025?

Not every employer is required to file IRS Form 940. You must file if:

  • You paid wages of $1,500 or more to employees in any calendar quarter during 2024 or 2025.
  • You had one or more employees (full-time, part-time, or temporary) for at least part of a day in any 20 or more different weeks in 2024 or 2025.

Special rules apply to certain employers:

  • Household employers: File if you paid $1,000 or more in cash wages to household employees in any quarter (often reported on Schedule H (Form 1040), but can be included on Form 940 if filing other employment tax returns).
  • Agricultural employers: File if you paid $20,000 or more in cash wages to farmworkers in any quarter or employed 10 or more farmworkers during some part of the day in 20 or more weeks.
  • Exemptions: State and local governments, Indian tribal governments, and most tax-exempt organizations (like 501(c)(3)s) are generally not required to file, unless paying wages on behalf of non-exempt entities.

If you had no employees or wages in 2025, but previously filed, check box “c” for no payments and submit the form. For businesses that closed or stopped paying wages, check box “d” for a final return.

Due Dates for Filing IRS Form 940 in 2025

The deadline for filing Form 940 for the 2025 tax year is February 2, 2026. However, if you deposited all required FUTA taxes on time and in full, you get an extension to February 10, 2026. Note that January 31, 2026, falls on a weekend, pushing the standard due date to the next business day.

FUTA tax deposits are required quarterly if your liability exceeds $500. Deposit deadlines are:

  • Quarter 1 (Jan-Mar): April 30, 2026
  • Quarter 2 (Apr-Jun): July 31, 2026
  • Quarter 3 (Jul-Sep): October 31, 2026
  • Quarter 4 (Oct-Dec): January 31, 2027

All deposits must be made electronically via EFTPS or other IRS-approved methods.

How to Fill Out IRS Form 940 for 2025?

Filling out the printable and fillable PDF version of Form 940 is straightforward but requires accurate payroll records. Here’s a simplified overview:

  1. Part 1: Employer Information – Enter your EIN, business name, address, and type of return (amended, successor, no payments, or final). New for 2025: Aggregate filers must specify if they’re a section 3504 agent, CPEO, or other third party.
  2. Part 2: Determine FUTA Tax Before Adjustments – Report total payments to employees (line 3), exempt payments (line 4), wages over $7,000 (line 5), and calculate taxable FUTA wages (line 7). Multiply by 0.006 for tax before adjustments (line 8).
  3. Part 3: Adjustments – Account for wages excluded from state taxes (lines 9-10) or credit reductions (line 11, using Schedule A if applicable).
  4. Part 4: Total Tax and Payments – Calculate total FUTA tax after adjustments (line 12), subtract deposits (line 13), and determine balance due or overpayment (lines 14-15). Overpayments can now be directly deposited (new for 2025).
  5. Part 5: Quarterly Liability – Required only if line 12 > $500; break down liability by quarter.
  6. Parts 6-7: Third-Party Designee and Signature – Authorize discussion with a designee if desired, then sign and date.

Attach Schedule A if in a credit reduction state, and Schedule R for aggregate filers.

Key Changes and Updates for IRS Form 940 in 2025

The IRS has introduced several updates for the 2025 tax year to streamline filing:

  • Aggregate Filer Identification: A new section requires aggregate return filers to identify as a section 3504 agent, CPEO, or other third party.
  • Direct Deposit for Refunds: Overpayments can now be directly deposited into checking or savings accounts, per Executive Order 14247.
  • Credit Reduction States: For 2025, California and the U.S. Virgin Islands are credit reduction states, potentially increasing your FUTA tax.
  • Electronic Options: Amended returns can be e-filed via Modernized e-File, and return transcripts are available online for 2023 and later.
  • Other Notes: Balance due payments must be electronic; Spanish version (Form 940-SP) available; moving expenses and bicycle reimbursements remain subject to FUTA.

No major changes to withholding tables or related forms under the One, Big, Beautiful Bill Act for 2025.

Where to Download the Printable & Fillable IRS Form 940 2025 PDF?

The official IRS Form 940 for 2025 is available as a printable and fillable PDF. Download it directly from the IRS website:

For e-filing, visit IRS.gov/EmploymentEfile or use authorized software like TaxBandits or OnPay.

Tips for Filing IRS Form 940 2025 Accurately

  • Calculate Quarterly: Track FUTA liability each quarter to determine deposit needs.
  • Avoid Penalties: File on time, deposit electronically, and attach required schedules.
  • Outsourcing Payroll: You’re still responsible for accuracy, even if using a PEO or CPEO.
  • Resources: Refer to IRS Publication 15 for more details, or call the Business Tax Line at 800-829-4933.

By following this guide, you’ll ensure your IRS Form 940 2025 is filed correctly. Stay compliant and focus on growing your business—happy filing!