6.0%
The FUTA tax is 6.0% (0.060) for 2017. Most employers receive a maximum credit of up to 5.4% (0.054) against this FUTA tax. Every quarter, you must figure how much of the first $7,000 of each employee’s annual wages you paid during that quarter.

What is reported on Line 4 of the 940 form?

For Form 940, Line 4, for payments exempt from FUTA tax, enter the total amount for items included on Line 3 that are not subject to FUTA tax. This includes payments for health and accident insurance, excess employer paid group term life insurance and employer contributions to retirement plans.

Do you have to pay Futa on 2017 Form 940?

To avoid a penalty, make your payment with your 2017 Form 940 . only if . your FUTA tax for the fourth quarter (plus any undeposited amounts from earlier quarters) is $500 or less. If your total FUTA tax after adjustments (Form 940, line 12) is more than $500, you must make deposits by electronic funds transfer. See

What kind of tax return do I need for Futa?

As an employer, you’ll report your annual FUTA tax liability using Form 940: Employer’s Annual Federal Unemployment Tax Return. Keep reading to learn more about filling out and filing Form 940. Enter your employer identification number (EIN) and company’s legal business name on both pages.

Is there an X form for the Form 940?

In addition, there is no “X” form for the Form 940, and taxpayer will continue to use a Form 940 for amended returns. For overpayments: Employers correcting an overpayment must use the corresponding “X” form. Employers can choose to either make an adjustment or claim a refund on the form.

How to file Form 940 for Puerto Rico?

Instructions for Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return Instructions for Form 940 (PR), Employer’s Annual Federal Unemployment (FUTA) Tax Return (Puerto Rico Version)