Part 5 — Instruction 940 — Instructions for Form 940

Fill out Part 5 only if line 12 is more than $500. If line 12 is $500 or less, leave Part 5 blank and go to Part 6.

16. Report the Amount of Your FUTA Tax Liability for Each Quarter Enter the amount of your FUTA tax liability for each quarter on lines 16a–16d. Don’t enter the amount you deposited. If you had no liability for a quarter, leave the line blank.

16a. 1 ^st quarter (January 1 to March 31) 16b. 2 ^nd quarter (April 1 to June 30) 16c. 3 ^rd quarter (July 1 to September 30)

14 Instructions for Form 940 (2025)

16d. 4 ^th quarter (October 1 to December 31) To figure your FUTA tax liability for the fourth quarter, complete Form 940 through line 12. Then, copy the amount from line 12 onto line 17. Lastly, subtract the sum of lines 16a through 16c from line 17 and enter the result on line 16d.

Example You paid wages on March 28 and your FUTA tax on those wages was $200. You weren’t required to make a deposit for the 1st quarter because your accumulated FUTA tax was $500 or less. You paid additional wages on June 28 and your FUTA tax on those wages was $400. Because your accumulated FUTA tax for the 1st and 2nd quarters exceeded $500, you were required to make a deposit of $600 by July 31.

You would enter $200 on line 16a because your liability for the 1 ^st quarter was $200. You would also enter $400 on line 16b to show your 2 ^nd quarter liability.

Tip: In years when there are credit reduction states, you must include liabilities owed for credit reduction with your fourth quarter deposit. You may deposit the anticipated extra liability throughout the year, but it isn’t due until the due date for the deposit for the fourth quarter, and the associated liability should be recorded as being incurred in the fourth quarter.

17. Total Tax Liability for the Year Your total tax liability for the year must equal line 12. Copy the amount from line 12 onto line 17.