When You Must Make FUTA Tax Deposits
If FUTA tax exceeds $500 in any quarter, you must deposit the tax by the last day of the month after the quarter the tax exceeds $500.
If during any quarter the FUTA tax is $500 or less, you do not have to deposit the tax. You carry over the undeposited tax to the next quarter and add it to that quarter's FUTA tax to determine if the $500 amount has been exceeded.
How To Determine if FUTA Taxes Exceed $500 in Any Quarter
- Figure the FUTA liability for each quarter you're in business and have employees.
- If your first quarter FUTA tax liability is $500 or less, no deposit is due. Simply carry over the amount of the undeposited FUTA tax to the next quarter
- If your FUTA liability in the second quarter, when added to the FUTA tax of the first quarter, still do not exceed $500, carry the undeposited FUTA tax to the next quarter.
- If in the third quarter the FUTA tax exceed $500, deposit the entire amount of the accumulated FUTA tax for the first, second, and third quarter by the last day of the month immediately after the end of that quarter (October 31 would be month immediately following the the third quarter).
Fourth Quarter Liability
If the fourth quarter FUTA tax liability, PLUS any undeposited FUTA tax from a previous quarter exceeds $500, you must deposit the entire amount of the tax by January 31.
When You May Pay FUTA Tax With Form 940
If the fourth quarter FUTA liability, PLUS any undeposited FUTA tax from a previous quarter is $500 or less, you can either deposit the tax or pay the tax with your Form 940 filed by January 31.
When the deposit due date falls on a Saturday, Sunday, or legal holiday, you may deposit the tax by the next business day.
Pay FUTA Online:
You can also deposit the tax and get confirmation of your payment online using the IRS Electronic Federal Tax Payment System (EFTPS).
To enroll in EFTPS, call 1-800-555-4477 or visit the EFTPS website at www.eftps.gov.
If your business is new, the IRS will automatically pre-enroll you in EFTPS when you apply for an Employee Identification Number (EIN) .
- Return to the Payroll Taxes Table of Contents to find related links.