QuickBooks Form 940 Explained: Filing, Deadlines, and Common Errors

Managing payroll taxes is one of the most important responsibilities for U.S. employers, and federal unemployment taxes are no exception. Many businesses rely on QuickBooks to simplify this task, but confusion around filing requirements, deadlines, and errors can still arise. Understanding how QuickBooks Form 940 works can help you stay compliant, avoid penalties, and ensure accurate FUTA tax reporting year after year.

QuickBooks Form 940 guide with filing steps, deadlines, error fixes, and expert support at +1-866-500-0076.

What Is QuickBooks Form 940?

Form 940 is an annual federal tax form used by employers to report Federal Unemployment Tax Act (FUTA) taxes. FUTA funds unemployment benefits for workers who lose their jobs, and most employers are required to file this form if they paid wages of $1,500 or more in any calendar quarter or had at least one employee for part of a day in 20 different weeks during the year.

QuickBooks simplifies FUTA reporting by automatically tracking taxable wages and calculating FUTA liability based on payroll data. Whether you’re using QuickBooks Online Form 940 or the desktop version, the software helps generate accurate reports—but only if payroll is set up correctly.

Who Needs to File Form 940?

You must file Form 940 if:

You paid FUTA-taxable wages during the year
You had employees subject to unemployment taxes
You operate a business in the United States

Nonprofits, certain agricultural employers, and household employers may have different requirements, but most small and mid-sized businesses must file annually.

If you’re unsure whether you’re required to file, professional assistance is available at +1-866-500-0076 for QuickBooks payroll guidance.

Filing Deadlines for Form 940

The standard filing deadline for Form 940 is January 31 following the end of the tax year. However, if all FUTA taxes were deposited on time, the IRS may allow an extension until February 10.

Missing the deadline can lead to penalties and interest, so reviewing your payroll records early is critical. QuickBooks provides reminders and reports, but it’s still your responsibility to submit the form on time.

How to File QuickBooks Form 940 Step by Step

Step 1: Verify Payroll Setup

Before generating Form 940, confirm that:

Employee profiles are accurate
Payroll tax settings are correct
FUTA rates are properly configured

Incorrect setup is a leading cause of QuickBooks form 940 error messages.

Step 2: Review FUTA Liability

QuickBooks calculates FUTA tax at 6% on the first $7,000 of wages per employee, with credits for state unemployment taxes paid. Review this data carefully to ensure accuracy.

Step 3: Generate Form 940

In QuickBooks, navigate to the Payroll Tax Forms section and select Form 940. Both QuickBooks desktop form 940 and online versions generate the form automatically using payroll data.

Step 4: Review and Correct Errors

Check for discrepancies in taxable wages, FUTA credits, or state tax payments. Fixing errors before filing prevents IRS notices later.

Step 5: E-File or Mail the Form

QuickBooks supports electronic filing in many cases, which is faster and more secure than mailing paper forms.

If you encounter filing issues, payroll experts at +1-866-500-0076 can help resolve them quickly.

Common QuickBooks Form 940 Errors and How to Fix Them

Even with automation, errors can happen. Here are the most common problems and solutions:

Incorrect FUTA Rate

This usually occurs when state unemployment credits are missing or entered incorrectly. Verify state tax payments in payroll settings.

Mismatched Wage Totals

If payroll reports don’t match Form 940 totals, review employee wage categories and taxable earnings.

Duplicate Payroll Entries

Duplicate paychecks can inflate FUTA liability. Run payroll summary reports to detect duplicates.

Filing for the Wrong Tax Year

Ensure you’ve selected the correct tax year when generating Form 940 in QuickBooks.

Persistent QuickBooks form 940 error issues may require professional troubleshooting—calling +1-866-500-0076 can save hours of frustration.

QuickBooks Online vs. Desktop: Form 940 Differences

While both versions support Form 940, there are some differences:

QuickBooks Online Form 940 offers cloud access, automatic updates, and easier e-filing
QuickBooks desktop form 940 provides more detailed reporting options but requires manual updates

Both versions are reliable when properly configured, so the best choice depends on your business needs.

In addition to FUTA reporting, employers often deal with contractor and payroll forms. Understanding 1099 forms for QuickBooks can help ensure full compliance across all tax obligations.

Best Practices to Avoid FUTA Filing Issues

Run payroll tax reports quarterly
Reconcile state unemployment payments regularly
Keep QuickBooks updated with the latest payroll tax tables
Review Form 940 before filing

Using these best practices reduces errors and ensures smooth filing each year.

Conclusion

Filing Form 940 doesn’t have to be stressful when you understand the process and use QuickBooks correctly. By reviewing payroll settings, verifying FUTA calculations, and filing on time, you can stay compliant and confident. Whether you’re using QuickBooks Online or Desktop, accurate data is the key to avoiding errors and IRS issues.For immediate assistance, contact +1-866-500-0076 and avoid costly penalties.