Who Must File Form 940?

Except as noted below, if you answer “Yes” to either one of these questions, you must file Form 940.

• Did you pay wages of $1,500 or more to employees in any calendar quarter during 2024 or 2025?

• Did you have one or more employees for at least some part of a day in any 20 or more different weeks in 2024 or 20 or more different weeks in 2025? Count all full-time, part-time, and temporary employees. However, if your business is a partnership, don’t count its partners.

Instructions for Form 940 (2025) 3

Generally, employers of household employees must file Schedule H (Form 1040) instead of Form 940.

However, if you have other employees in addition to household employees, you can choose to include the FUTA taxes for your household employees on Form 940 instead of filing Schedule H (Form 1040). If you choose to include household employees on your Form 940, you must also file Form 941, Employer’s QUARTERLY Federal Tax Return; Form 943, Employer’s Annual Federal Tax Return for Agricultural Employees; or Form 944, Employer’s ANNUAL Federal Tax Return, to report social security, Medicare, and any withheld federal income taxes for your household employees. See Pub. 926 for more information.

For Agricultural Employers... File Form 940 if you answer “Yes” to either of these questions.

• Did you pay cash wages of $20,000 or more to farmworkers during any calendar quarter in 2024 or 2025?

• Did you employ 10 or more farmworkers during some part of the day (whether or not at the same time) during any 20 or more different weeks in 2024 or 20 or more different weeks in 2025?

Count wages you paid to aliens who were admitted to the United States on a temporary basis to perform farmwork (workers with H-2A visas). However, wages paid to H-2A visa workers aren’t subject to FUTA tax. See Pub. 15 for more information.

For Indian Tribal Governments... Services rendered by employees of a federally recognized Indian tribal government employer (including any subdivision, subsidiary, or business enterprise wholly owned by the tribe) are exempt from FUTA tax and no Form 940 is required. However, the tribe must have participated in the state unemployment system for the full year and be in compliance with applicable state unemployment law. For more information, see section 3309(d).

For Tax-Exempt Organizations... Religious, educational, scientific, charitable, and other organizations described in section 501(c)(3) and exempt from tax under section 501(a) generally aren’t subject to FUTA tax. However, a section 501(c)(3) organization is subject to FUTA tax when paying wages to employees on behalf of a non-section 501(c)(3) organization (for example, a section 501(c)(3) organization paying wages to employees of a related non-section 501(c)(3) organization, a section 501(c)(3) organization that is a section 3504 agent paying wages on behalf of a non-section 501(c)(3) organization, a section 501(c)(3) organization that is a common paymaster paying wages on behalf of a non-section 501(c)(3) organization, etc.).

For State or Local Government Employers... Services rendered by employees of a state, or a political subdivision or instrumentality of the state, are exempt from FUTA tax and no Form 940 is required.