File Form 940 with the IRS, not your state — and send payment separately depending on how much you owe

Form 940 (the Employer's Annual Federal Unemployment Tax Return) goes to the IRS, not to your state unemployment office. You file it by mail to an IRS address that depends on your state, or you can file electronically through IRS e-Services or approved tax software. The payment itself moves through a different channel: if you owe $2,500 or more for the quarter, you must pay through the Electronic Federal Tax Payment System (EFTPS) or through your tax software. If you owe less than $2,500, you can include a check with your paper return.

The timing matters. Form 940 is due January 31 of the year after the tax year ends — so the 2024 form is due January 31, 2025. If you file by mail, the IRS date-stamps it when it arrives. If you file electronically, the acceptance happens instantly. Payments must clear by the due date; mailing a check on January 30 does not count as paid on time if it arrives in February.

Key Takeaways

  • Form 940 files to the IRS at a state-specific mailing address, or electronically through EFTPS, tax software, or IRS e-Services.
  • Payments of $2,500 or more must go through EFTPS or tax software; payments under $2,500 can be mailed as a check with your paper return.
  • The filing deadline is January 31 of the following year, and payments must clear by that date, not just be postmarked.
  • If you file electronically, keep your confirmation number; if you mail it, send it certified mail so you have proof of delivery.

Mailing addresses for Form 940 by state

The IRS maintains separate mailing addresses for Form 940 depending on which state your business is located in. This is not your state unemployment office — it is a regional IRS processing center. You can find the correct address on the Form 940 instructions (page 2 of the current form), or by calling the IRS at 800-829-1040 and asking for the Form 940 mailing address for your state.

If you are in a state without a specific address listed, use the general IRS address for your region. The form itself tells you which region you fall into. Do not guess or use an address from a previous year — the IRS consolidates processing centers periodically, and sending to an old address delays processing and can trigger a notice.

Always mail Form 940 by itself, not bundled with other tax forms. Include a check only if your payment is under $2,500. Write your EIN (Employer Identification Number) on the check, and include a cover letter with your name, address, and phone number so the IRS can contact you if something is missing.

Electronic filing through EFTPS or tax software

If you owe $2,500 or more, you must pay electronically. The Electronic Federal Tax Payment System (EFTPS) is the IRS's direct payment portal. You enroll once (it takes about a week to activate), then log in and schedule payments. You can pay up to 120 days in advance, which is useful if you want to pay early and avoid a rush on the deadline.

Most tax software (including TurboTax, H&R Block, and professional payroll platforms like ADP or Gusto) lets you file Form 940 and pay in one step. The software generates the electronic filing and routes the payment to EFTPS automatically. You receive a confirmation number immediately. This is the fastest and least error-prone route for most small businesses.

If you use a payroll service, ask whether they file Form 940 and handle payment for you. Many do this as part of their annual tax service, which means you do not file separately at all — the service files on your behalf and deducts the payment from your account. Confirm this in writing before the deadline so you know whether you need to file yourself.

What happens if you miss the January 31 deadline

If Form 940 is not filed or paid by January 31, the IRS assesses a failure-to-file penalty of 5% of the unpaid tax for each month (or part of a month) the return is late, up to 25%. A failure-to-pay penalty of 0.5% per month also applies to unpaid tax. These penalties stack, so a return that is three months late can owe 15% to 16.5% in penalties alone, on top of the original tax and interest.

If you discover you missed the deadline, file and pay immediately. The sooner you file, the smaller the penalty window. If you cannot pay in full, file anyway and set up a payment plan with the IRS. You can request an installment agreement by phone (800-829-1040) or through your IRS online account. A payment plan does not stop penalties, but it stops them from growing while you pay.

If you have a legitimate reason for the delay (death, serious illness, natural disaster), you can request reasonable cause relief from penalties. This requires a written explanation and supporting documents. Send it to the IRS address where you filed Form 940, marked "Reasonable Cause Request." The IRS does not grant this often, but it is worth requesting if your situation was genuinely beyond your control.

Reconciling Form 940 with quarterly Form 941 filings

Form 940 is an annual summary of all the federal unemployment tax (FUTA) you owed during the year. It should match the FUTA amounts you reported on your quarterly Form 941 (Employer's Quarterly Federal Tax Return). If they do not match, the IRS will notice and send you a notice of discrepancy.

Before you file Form 940, pull your four quarterly Form 941 filings and add up the FUTA tax on each one. That total should equal the FUTA on Form 940, line 12. If it does not, find the error on one of the quarterly forms and file an amended Form 941-X for that quarter before you file Form 940. This prevents a mismatch notice and keeps your account clean.

If you discover the mismatch after you have already filed Form 940, file Form 940-X (the amended version) as soon as you realize the error. The same penalties apply if you are late, so speed matters. Include a note explaining the discrepancy and reference the amended quarterly form you filed.

Keeping proof of filing and payment

If you file electronically, the IRS sends you a confirmation number by email or through your online account. Save this number and the confirmation email. It proves you filed on time and is your receipt if the IRS ever questions whether you submitted the return.

If you mail Form 940, send it by certified mail with return receipt requested. The post office gives you a receipt showing the date it was delivered. Keep this receipt with your tax records for at least three years. The IRS can audit payroll taxes going back six years in some cases, so having proof of timely filing protects you if a question comes up later.

If you pay by check, keep a copy of the check and the cover letter you sent. If you pay through EFTPS or tax software, print or save the confirmation page. These documents together prove you filed and paid on time, which is your defense if the IRS ever claims you did not.

Frequently Asked Questions

Can I file Form 940 before January 31?

Yes. You can file as early as February 1 of the prior year (so February 1, 2024 for the 2023 tax year). Filing early does not hurt, and it gets the return processed faster. If you owe money, paying early also stops interest from accruing.

What if my business closed during the year?

You still file Form 940 for the year the business closed. Check the "Final Return" box on the form. File it by January 31 of the following year, or within 30 days of closing if that is sooner. If you owe FUTA tax, pay it with the return.

Do I need to file Form 940 if I had no employees?

No. Form 940 is only required if you paid wages to employees. If you were self-employed or had only contract workers, you do not file Form 940. Self-employment tax goes on your personal tax return (Schedule SE) instead.

What if I filed Form 940 but forgot to pay?

Contact the IRS immediately at 800-829-1040 and pay the amount owed. You will owe failure-to-pay penalties and interest from the original due date, but paying now stops the penalties from growing. Ask about a payment plan if you cannot pay in full.

Can my accountant or payroll company file Form 940 for me?

Yes. If you give them power of attorney (Form 2848), they can file and pay on your behalf. Make sure they know the deadline and confirm in writing that they will handle it. You remain responsible if they miss the deadline, so follow up in early January to confirm it is filed.