The 940 – properly calculating and paying your FUTA tax

Mark Schwartz


About the Webinar

The 940 calculates your total FUTA (Federal Unemployment Tax) owed for a calendar year. FUTA is a tax paid to the federal government, and used to support state unemployment insurance programs.

FUTA is not to be confused with SUTA (State Unemployment Tax) ,paid throughout the year to any state you have employees in. However, SUTA payments paid on time minimize your FUTA tax, which is usually set at 0.6% up to $7000 paid to each employee, regardless of the state the employee performs work in.

There are reasons that an employer’s FUTA may exceed 0.6% In addition to paying SUTA late. Failure to make FUTA deposits on time, or credit reductions taken by certain states, can result in more FUTA tax owed.

Because of this, and other information required to complete the form 940, employers can find it confusing to complete. So Join Mark Schwartz in this informative webinar. In addition to all the information and calculations necessary for the 940, you will learn how to determine that your SUTA tax is calculated and paid correctly. You will follow your SUTA information to the appropriate sections of Form 940 – for a better understanding of how it affects FUTA liability.

Session Highlights:

  1. Purpose of form 940

      2. New for 2024


  • Expenses, reimbursements and fringe benefits
  • Outsourcing responisibilites
  • Disregarded entities, and more…

     4. Who must file

     5. Due dates and deposit deadlines

     6. Basic computations

     7. Form 940, part by part

  • Pt 1: Info for YOUR business
  • Pt 2: FUTA tax before adjustments
  • Pt 3: Adjustments and the line 10 worksheet
  • Pt 4: Total adjusted FUTA tax
  • Pt 5: Quarterly information
  • Pt 6: 3rd party designee

     8. Sch A: Credit reduction state calculations

     9. SUTA overview

  • States with an additional employee withholding
  • What is considered when calculating SUTA rates for employers (experience rating)
  • Multistate determinations: which state to pay your suta for employees who work in more than one state.                                                           

      10. Sample completed W4 with computations and schedules.

Who Should Attend:

  • Payroll staff and management
  • HR staff who deal with unemployment issues
  • Personnel managers
  • Financial staff for payroll matters.

The 940 – properly calculating and paying your FUTA tax