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Form 940-SP: 940 (sp)
IRS Form 940 (sp) is the Federal Unemployment Tax Act (FUTA) Annual Federal Unemployment Tax Return for employers. This form reports wages subject to FUTA and shows credit reductions, noting that a reduction may occur based on state unemployment tax rates.
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IRS Form 940-SP - 940 (sp)
IRS Form 940 (sp) is the Federal Unemployment Tax Act (FUTA) Annual Federal Unemployment Tax Return for employers. This form reports wages subject to FUTA and shows credit reductions, noting that a reduction may occur based on state unemployment tax rates.
Risk Radar
Scan points- 1Do not include penalties or interest in your state unemployment taxes reported on Form 940.
- 2Rounding amounts incorrectly (e.g., rounding $1.49 down to $1.00 instead of up to $2.00).
- 3Omitting wages that are subject to state unemployment tax laws.
- 4Failing to calculate the credit reduction when paying into a state with a reduction.
- 5Including administrative taxes or voluntary contributions in State Unemployment Taxes (Line 1/2).
Plain English
This form tells the IRS how much your business paid into the federal fund for unemployment taxes during the year. It also accounts for any discounts you received because of state unemployment tax credits. You file this to report your annual FUTA obligations.
Submission Date
- Filing date: 2025-11-25 08:10:07
- Preparation window: collect IDs, supporting records, and signatures in advance.
- Final review: verify names, dates, and required fields before submission.
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What this form is for
- Use this form when reporting wages subject to the Federal Unemployment Tax Act (FUTA) for an annual filing.
- Do not use this form if you are a filer of aggregated returns but need to identify yourself as an agent, Certified Professional Employer Organization (PEO), or other third party; use the new section on Form 940 instead.
- Check Form 940-V when making payments by Electronic Funds Transfer (EFT) instead of mailing in the main return.
Form selector
Use this form or another form?
Employer reports wages subject to FUTA
This form declares your annual Federal Unemployment Tax Act (FUTA) tax liability for the year.
✓ Confirm you are reporting wages subject to state unemployment tax reduction credits.
Filing an amended return
Employers must check box 'a.' on Form 940 (sp) if filing an amended return.
✓ Check that the revision date reads 20/25 or later.
Employer has no payments in 2025
If no payments were made to employees in 2025, check box 'c.' on Form 940 (sp).
✓ Check that the form is for the year 2025.
Employer submitting final return
Employers must check box 'd.' on Form 940 (sp) when filing a final return.
✓ Check that you are using the current edition, which is dated Nov 20, 2025.
Deadline or filing window
The deadline for paying state unemployment taxes is 'at a due date for filing Form 940.' If you file late, the payment is considered 'late.' The source does not specify an extension option but notes that amendments can be filed electronically via Modernized e-File (MeF).
Checklist
What you need before filling it out
Aggregated Filers
Identification details (agent, PEO, or other third party) · New section on Form 940
Tax Payments
Must use Electronic Funds Transfer (EFT) method · Instructions p.2 / Form p.3
FUTA Tax Payment
The tax being reported/paid for the year · Form 940 Title & Instructions p.1
State Credit Reduction
Determination of which states qualify as a 'credit reduction state' · Instructions p.1 (EO 14247 context)
EFT Submission Method
Must be EFTPS, IRS Direct Pay, or IRS Business Account · Instructions p.2 / Form p.3
Before you submit
- 1Identify yourself correctly if filing as an aggregated return using the new section on Form 940.
- 2Ensure all federal tax deposits are made via Electronic Funds Transfer (EFT).
- 3If paying by EFT, confirm you are *not* sending Form 940-V but rather using the payment method detailed in Instructions for Form 940.
- 4Verify that your filing is either a full submission or correctly indicates 'without a payment' if submitting via EFT.
- 5Confirm the correct mailing address to use when paying by EFT, as specified in the instructions.
- 6Review the section detailing any state credit reductions applicable to your wages.
- 7If you are using an electronic method, confirm the transaction was successfully initiated through EFTPS, IRS Direct Pay, or your Business Account.
How to file this form
- 1Complete all required sections of IRS Form 940 (sp), ensuring proper identification if filing as an aggregated return.
- 2Calculate and document any additional federal tax due due to a state having a credit reduction status for the relevant year.
- 3Make payment of the balance due using one of the mandated Electronic Funds Transfer (EFT) methods: EFTPS, IRS Direct Pay, or your IRS Business Account.
- 4If paying by EFT, submit the main Form 940 declaration using the mailing address designated for 'without a payment' in the Instructions for Form 940. Finalize filing by retaining a copy of the submitted return and confirmation receipt.
Known limitations
- 1The Form 940 (sp) is for reporting wages subject to the Federal Unemployment Tax Act (FUTA), but it will show a reduction in federal unemployment tax credit if salaries are paid under a state with a reduced credit rate.
- 2Employers in Puerto Rico receive service hours from 8:00 a.m. to 8:00 p.m. local time for this form.
- 3The Form 940 (sp) is available in Spanish.
Field map
Compact field-by-field guide
Employer Info
1 items
Full legal name and Employer Identification Number.
Quarter
1 items
Select the calendar quarter this return covers.
Wages
1 items
Sum of all wages, tips, and other compensation paid to employees during the quarter.
Withholding
1 items
Total federal income tax withheld from employee paychecks.
SS & Medicare
1 items
Wages subject to Social Security tax (capped) and Medicare tax (uncapped).
Deposit
1 items
Indicate your deposit schedule: monthly, semiweekly, or next-day rule if over $100k.
Signatures
1 items
Must be signed by an authorized officer or agent of the employer.
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Fillable formOpen in Editor->The current edition is 20/25. For the most recent information regarding IRS Form 940 and its instructions, filers should access IRS.gov/Form940SP.
What changed or needs a fresh check
- Edition date — confirm the revision reads 20/25.
- New Section — confirm that aggregated filers have identified themselves using the new section on Form 940.
- Payment Method — confirm if you are submitting a payment via EFTPS, IRS Direct Pay, or your Business Account.
- Mailing address — confirm the correct mailing address to use when paying by EFT (as detailed in Instructions for Form 940).
- Electronic Filing Access — confirm that transcripts for tax years 2023 and later are available via your IRS business account at IRS.gov/BusinessTranscript.
Quick Facts
Downloads
After you file
- 1Keep a copy of the filed Form 940 (sp).
- 2If you use the Form 940-V, do not staple or attach this voucher to your payment.
- 3When filing electronically (e-file), you may use Electronic Funds Withdrawal (EFW) for payment, but do not use EFW for making federal tax deposits.
- 4Ensure that if you are submitting the Form 940 along with a payment, you also complete and include the top section of Part 1 of the Form 940 which requests entity information.
Sources
- SRCInstructions p.1 — The purpose of Form 940 (sp) is to declare your annual Federal Unemployment Tax Act (FUTA) tax.
- SRCInstructions p.1 — If wages are paid subject to state unemployment tax laws with a credit reduction, the federal unemployment tax credit will be reduced based on that state's rate; use Schedule A (Form 940) to calculate this reduction.
- SRCInstructions p.3 — Businesses can file and pay electronically using e-file options by visiting IRS.gov/EmploymentEfile.
- SRCInstructions p.3 — When filing electronically, the Electronic Funds Withdrawal (EFW) option allows payment of the balance in one step; however, EFW should not be used for federal tax deposits.
- SRCForm p.1 — The Form 940 (sp) is for the year 2025 and has an OMB Number of 1545-0029.
- SRCInstructions p.3 — Employers in Puerto Rico receive service from 8:00 a.m. to 8:00 p.m. local time.
- SRCForm p.3 — Form 940-V must be detached and sent with the payment and Form 940, noting that it requires EIN and business name information.
- SRCInstructions p.1 — The form is available in Spanish (sp) and has a Catalog Number of 93764V.
Common confusion points
What is the difference between the 'Name' and 'Commercial Name' on Form 940 (sp)?
The 'Name' must be the legal name of the business, while the 'Commercial Name' is used if one exists.
→ Check the boxes/fields on Form p.1 to confirm which information belongs where.
Do I need to use a specific font when filling out Form 940 (sp)?
If writing or typing, use Courier typeface in 12-point size for all annotations, especially if using physical forms.
→ Verify the instructions again on Instructions p.7 and check the PDF fields for acceptable source specifications.
How should I write dollar amounts on the form?
Omit the dollar sign ($) and decimal points; commas are optional. Write the dollars to the left of the printed decimal point and cents to the right.
→ Review Form p.7 instructions for exact placement guidance regarding currency notation.
What is the purpose of filing Form 940 (sp)?
The Form 940 (sp) is used to annually declare your tax under the Federal Unemployment Tax Act (FUTA), which funds unemployment compensation payments for laid-off workers.
→ Confirm this purpose against Instructions p.3, where it states what the form explains.
Where do I file the Form 940 (sp)?
The location is indicated in the instructions for Form 940, but the general filing address is not listed on the excerpt provided.
→ Refer to the main "Instructions for Form 940" booklet for the specific mailing address.
When should I use a 'Final' declaration?
Select 'd.' (Final) on Form p.1 if it indicates that this is the final filing for the year regarding FUTA taxes.
Workflow map
Related forms and next steps
Before
Current
After
Often used with
⚠ If something goes wrong
- Use Form 940 to declare your annual FUTA tax, and use this form when you need to report wage-related credit reductions.
Questions about IRS Form 940-SP
What is IRS Form 940-SP used for?
This form tells the IRS how much your business paid into the federal fund for unemployment taxes during the year. It also accounts for any discounts you received because of state unemployment tax credits. You file this to report your annual FUTA obligations.
Who must file IRS Form 940-SP?
Employers must file Form 940 (sp). This form is used by employers who pay wages subject to the laws of a state with an unemployment credit reduction.
What information does IRS Form 940-SP require?
The form collects information on wages paid and tax credits. Specific details are recorded, such as reductions in federal unemployment tax credit calculated using Anexo A (Form 940) and total amounts reported on lines like Line 1 and Line 2.
When is IRS Form 940-SP due?
The deadline to pay state unemployment taxes is "at a due date for filing Form 940." The source does not specify the exact due date, only that payment must be made by this time.
Where do I file IRS Form 940-SP?
Filing can occur electronically via IRS.gov/EmploymentEfile (using Spanish language options) or through paper submission. The instructions mention using Electronic Funds Withdrawal (EFW) for payment if filing electronically.
How do I complete IRS Form 940-SP?
First, calculate your wages and credits according to the form structure. If you round figures, ensure all amounts follow the rounding rules (e.g., $1.49 rounds up to $2.00). Finally, ensure the document is signed before sending it to the IRS.
What happens if IRS Form 940-SP is filed incorrectly?
If the form is completed incorrectly, the consequence is not explicitly stated as a penalty in every instance, but payments made outside of time are considered 'late' and penalties/interest may apply. Additionally, incorrect reporting on Line 3 requires careful review of state experience rates.
What is the difference between the 'Name' and 'Commercial Name' on Form 940 (sp)?
The 'Name' must be the legal name of the business, while the 'Commercial Name' is used if one exists. Check the boxes/fields on Form p.1 to confirm which information belongs where.
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