Credit for State Unemployment Tax Paid to a State Unemployment Fund

Generally, you get a credit for amounts you pay to a state (including the District of Columbia, Puerto Rico, and the U.S. Virgin Islands) unemployment fund by February 2, 2026 (or February 10, 2026, if that is your Form 940 due date). Your FUTA tax may be higher if you don’t pay the state unemployment tax timely by February 2, 2026 (or February 10, 2026, if that is your Form 940 due date). This is true regardless of whether state law defers the payment of taxes due until after this date. If you didn’t pay all state unemployment tax by the due date of Form 940, see the line 10 instructions. For wages paid to a work site employee, a CPEO is eligible for the credit whether the CPEO or a customer of the CPEO made the contribution with respect to a work site employee.

collect and remit contributions to the state unemployment fund with respect to a work site employee.

Special credit for successor employers. You may be eligible for a credit based on the state unemployment taxes paid by a predecessor. You may claim this credit if you’re a successor employer who acquired a business in 2025 from a predecessor who wasn’t an employer for FUTA purposes and, therefore, wasn’t required to file Form 940 for 2025. See section 3302(e). You can include amounts paid by the predecessor on the Worksheet—Line 10 as if you paid them. For details on successor employers, see Successor employer under Type of Return, later. If the predecessor was required to file Form 940, see the line 5 instructions.