The 940 payment important date is January 31 of the year after the tax year ends
If you ran a business in 2024, your Form 940 payment and the form itself are both due on January 31, 2025. This is a single important date for both the form and the money — you do not file the form first and pay later. The IRS treats them as one obligation.
The payment covers federal unemployment tax (FUTA) that you owe on wages you paid during the calendar year. The amount depends on your payroll, your state's unemployment rate, and whether you received a credit for state unemployment taxes you already paid. Most employers owe between 0.6% and 6% of the first $7,000 in wages per employee, though the exact rate varies by state and your experience rating.
If January 31 falls on a weekend or federal holiday, the important date moves to the next business day. In 2025, January 31 is a Friday, so that is your important date. If you file electronically, the IRS accepts submissions until midnight Eastern time on that date.
Key Takeaways
- Form 940 and the FUTA payment are due together on January 31 of the following year, not on separate dates.
- You can pay by electronic federal tax payment system (EFTPS), through your tax software, by credit or debit card, or by check mailed to the IRS.
- If you made quarterly deposits throughout the year, those deposits count toward your final 940 payment — you only owe the difference on January 31.
- The IRS charges penalties and interest if you miss the important date, even by one day, so submitting early is safer than waiting until the last moment.
How quarterly deposits affect your January 31 payment
Most employers do not pay all their FUTA tax on January 31. Instead, they make quarterly deposits during the year — usually in April, July, October, and January — based on how much unemployment tax they expect to owe. These deposits are advance payments toward your final 940 liability.
On January 31, you file Form 940 and calculate your actual FUTA tax for the full year. The IRS subtracts all the quarterly deposits you already made from that total. You pay only what remains. If your deposits exceeded your actual liability, the IRS refunds the overpayment or credits it to next year's account, depending on what you request on the form.
If you made no quarterly deposits during the year — which happens when your FUTA tax is small enough to fall below the deposit threshold — you owe the full amount on January 31. The threshold is $500 in any quarter; if a quarter's tax is less than $500, you carry it forward and deposit only when the running total hits $500 or the year ends.
What happens if you miss the January 31 important date
The IRS charges a failure-to-pay penalty of 0.5% of the unpaid tax for each month or part of a month the payment is late. Interest accrues daily at the federal rate, which changes quarterly. A payment that is 30 days late costs you both the penalty and interest from January 31 onward.
The penalty caps at 25% of the unpaid tax, but it reaches that point only after 50 months of non-payment. More practically, a payment that is three months late costs you roughly 1.5% in penalty plus interest. The longer you wait, the more expensive the debt becomes.
If you cannot pay by January 31, file the form on time anyway and pay what you can. The failure-to-file penalty (5% per month) is steeper than the failure-to-pay penalty (0.5% per month), so submitting the form protects you even if the money arrives late. You can also request a short-term extension or a payment plan through the IRS if you contact them before the important date.
Payment methods and how to submit
The IRS accepts Form 940 and FUTA payments through four main channels. The fastest and safest is the Electronic Federal Tax Payment System (EFTPS), a free service where you schedule payments in advance and receive confirmation when ready. You can set up EFTPS through your bank or directly at eftps.gov.
Tax software — including TurboTax, H&R Block, and others — lets you file Form 940 and pay in one step. The software calculates your liability, files the form electronically, and processes the payment by credit card or bank transfer. This method is common for small businesses because it handles the math and keeps records in one place.
You can also pay by credit or debit card through approved payment processors, though they charge a processing fee (usually 2% to 3% of the payment). Paying by check is still allowed: mail the check with Form 940 to the address listed in the form instructions for your state. Checks must arrive by January 31 to meet the important date; the postmark date does not count.
Extension requests and what they actually do
The IRS does not grant extensions for the Form 940 important date itself. You cannot ask for more time to file the form or pay the tax. However, you can request a payment plan or short-term extension if you cannot pay the full amount by January 31.
A short-term extension allows you to pay within 120 days of the important date without filing a formal request — you straightforward pay late and accept the penalties and interest. A long-term installment agreement requires you to contact the IRS before January 31 and set up a monthly payment schedule. The IRS charges a setup fee (usually $31 to $225 depending on the method) plus interest on the unpaid balance.
If you have not filed Form 940 in previous years and owe back taxes, the important date situation is more complex. Contact the IRS directly or work with a tax professional to address unpaid years before filing the current year's return.
State unemployment tax important date and how they differ
Form 940 is federal, but most states also require you to file a state unemployment tax return and pay state unemployment tax (SUTA) on the same wages. State important date vary: some states align with the federal January 31 important date, while others require payment by the end of January or early February. A few states have different schedules entirely.
State payments and federal payments are separate. You cannot combine them into one check. Your state unemployment agency will tell you the exact due date and where to send payment when you register as an employer. If you use payroll software, it usually tracks both important date and reminds you of each one.
Some states offer a credit against your federal FUTA tax if you pay state unemployment tax on time. This credit reduces your federal liability on Form 940. The credit is automatic — you do not have to request it — but only if you paid state tax by the important date. Missing a state important date can cost you the credit and increase your federal bill.
Frequently Asked Questions
Do I have to pay Form 940 if I had no employees?
No. Form 940 is required only if you paid wages to employees during the year. Sole proprietors and partners who did not hire anyone do not file Form 940. If you paid yourself a salary through an S-corp or C-corp, you likely had employees (yourself) and must file, but the rules vary by business structure.
What if I filed Form 940 late last year — do I still owe penalties?
Yes. Penalties and interest do not disappear if you file late. The IRS calculates them from the original important date (January 31) to the date you actually paid, regardless of when you filed. If you owe back penalties from a previous year, contact the IRS about a payment plan or penalty relief if you have reasonable cause.
Can I file Form 940 before January 1?
No. Form 940 covers the full calendar year, so you cannot file it until after December 31. You can prepare it in advance and submit it on January 1 or shortly after, but the IRS will not accept it before the year is complete. Filing early is fine; filing before the year ends is not.
What if my quarterly deposits were too high and I overpaid?
When you file Form 940, you report the overpayment. The IRS will refund it to your bank account or credit it to next year's account, depending on what you choose on the form. Refunds typically process within two to four weeks if you filed electronically, or longer if you mailed a paper return.
Do I need to file Form 940 if I only had employees for part of the year?
Yes. If you paid wages to any employee at any point during the calendar year, you must file Form 940 and report all wages paid that year. The form does not have a minimum threshold for how long someone worked or how much they earned.