When Must You Deposit Your FUTA Tax?

Although Form 940 covers a calendar year, you may have to deposit your FUTA tax before you file your return. If your FUTA tax is more than $500 for the calendar year, you must deposit at least one quarterly payment.

You must determine when to deposit your tax based on the amount of your quarterly tax liability. If your FUTA tax is $500 or less in a quarter, carry it over to the next quarter. Continue carrying your tax liability over until your cumulative tax is more than $500. At that point, you must deposit your tax for the quarter. Deposit your FUTA tax by the last day of the month after the end of the quarter. If your tax for the next quarter is $500 or less, you’re not required to deposit your tax again until the cumulative amount is more than $500.

Fourth quarter liabilities. If your FUTA tax for the fourth quarter (plus any undeposited amounts from earlier quarters) is more than $500, deposit the entire amount by February 2, 2026. If it is $500 or less, you can either deposit the amount or pay it with your Form 940 by February 2, 2026.

In years when there are credit reduction states, you must include liabilities owed for credit reduction with your fourth quarter deposit.

When To Deposit Your FUTA Tax

State unemployment taxes are sometimes called contributions. These contributions are payments that a state requires an employer to make to its unemployment fund for the payment of unemployment benefits. They don’t include:

If your undeposited FUTA tax is more than $500 on... ¹

Deposit your tax by... ²

• Any payments deducted or deductible from your employees’ pay;

• Penalties, interest, or special administrative taxes; and

• Voluntary amounts you paid to get a lower assigned state experience rate.

Additional credit. You may receive an additional credit if you have a state experience rate lower than 5.4% (0.054). This applies even if your rate varies during the year. This additional credit is the difference between your actual state unemployment tax payments and the amount you would have been required to pay at 5.4%. For wages paid to a work site employee, the CPEO is allowed the additional credit if the CPEO is allowed, under state law, to

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1 Also, see the instructions for line 16.

2 If any deposit due date falls on a Saturday, Sunday, or legal holiday, you may deposit on the next business day. See Timeliness of federal tax deposits , later.