If you are an employer, other than a household or agricultural employer, you may have to file a Federal Unemployment tax return, Form 940 (PDF) or Form 940EZ (PDF) , if either of the following situations apply:

1. You paid $1,500 or more in wages during any calendar quarter in the prior or current year, or
2. You had at least one employee work for some part of a day in any 20 or more different weeks in the prior year or 20 or more different weeks in the current year.

Count all regular, temporary, and part–time employees. If you are a household employer, you will generally file Form 1040, Schedule H (PDF), if you paid cash wages more than the specified amount per year for household work in your private home. Also, file Form 940 or Form 940EZ if you paid cash wages of $1,000 or more in any calendar quarter in the current or prior year for household work in a local college club, or a local chapter of a college fraternity or sorority.

If you are an agricultural employer, you will have to file Form 940 or Form 940EZ for farm workers if:

1. You paid cash wages to farm workers of $20,000 or more in any calendar quarter in the prior or current year, or
2. You had 10 or more farm workers during some part of a day for at least one day during any 20 or more different weeks in the prior year or 20 or more different weeks in the current year. Bona fide residents of Puerto Rico should refer to Topic 903.

Include cash compensation paid to aliens (also known as workers with H–2 (A) visas) admitted on a temporary basis to the U.S. to perform farm work, to see if you meet either test. However, compensation paid to H–2 (A) visa holders is not subject to the Federal unemployment tax and should be entered as "Exempt Payments" on the appropriate line of either Form 940 or Form 940EZ.

The gross Federal unemployment tax rate for each tax year is 6.2 percent and is figured on the first $7,000 of the wages you paid each employee in each tax year. If you paid all of the state unemployment tax timely on the same wages, you are allowed a state credit of up to 5.4 percent. The Federal tax rate is 0.8 percent after the credit.

If you do not pay the state unemployment tax timely, your credit for the late payment(s) is limited to 90 percent of the amount you would have been allowed, if paid on time.

You may be able to file Form 940EZ, a simplified Federal unemployment tax return for the current year, if you meet the following:

1. You made state unemployment contributions to only one state,
2. You paid all your state contributions by the due date January 31, , (February 10th if you deposited all FUTA tax when due), and
3. All of your Federal unemployment tax wages were also taxable for your state's unemployment tax.

The due date for filing the Form 940 (PDF) or Form 940EZ (PDF) is January 31st. However, if you deposited all FUTA tax when due, you have until February 10th, to file. If the due date falls on a Saturday, Sunday, or legal holiday, the due date is delayed until the next business day. For more information, refer to Publication 15, Circular E, Employer's Tax Guide, and Publication 15-A (PDF), Employer's Supplemental Tax Guide. Additionally, if you are interested in the Form 940 e-file Program or the 940 On-Line option, please visit our website at www.irs.gov and click on the e-file logo or call toll free 1–866–255–0654.

For information on deposit rules, refer to Topic 759.