The second payment is the Federal Unemployment Tax (FUTA), known as a “940” deposit. Taxes for each quarter must be paid on or before the last day of the calendar month following each quarter. There is an exception- if the tax due is less than $100, it is not necessary to make a deposit. That liability can be carried over to the next quarter.

Payments for both the 940 and 941 deposit are made by either using coupons from the IRS Form 8109 booklet, paying through the IRS EFTPS system or by letting PayChoice manage everything through our Easy Street offering.

Learn About Federal Tax Filing Reports

If you’re late with payments you may also be liable for Penalties.

Form 8109: You will receive your 8109 coupon booklet once you have applied for a federal identification number. Complete this coupon following instructions in the booklet. A check made payable to the bank, along with a completed coupon, should be deposited at a bank designated to receive federal tax deposits. Retain the dated bank receipt for your records and record all deposits in your 8109 booklet for easy reference.

EFTPS: The IRS has determined that an employer must deposit its withheld income and employment taxes (as well as other federal depository taxes) by electronic funds transfer (EFT) if the amount of such taxes exceeds a certain amount during a “determination period.” The IRS will notify businesses by letter when mandated to file electronically.