FUTA payments are due quarterly, with important date set by the IRS

FUTA stands for Federal Unemployment Tax Act. If you have employees, you pay FUTA taxes to fund unemployment insurance programs. The IRS sets four payment important date each year, and they do not move — they are the same every year.

The four quarterly important date are April 30, July 31, October 31, and January 31 of the following year. Each important date covers the three months before it. For example, the April 30 important date covers January, February, and March wages. If a important date falls on a weekend or holiday, you can pay the next business day.

You only owe FUTA if you paid at least $1,500 in wages during a calendar quarter. Many small employers never reach this threshold and never file FUTA. If you are unsure whether you owe it, check your business structure and payroll records — your accountant or payroll service can confirm in minutes.

Key Takeaways

  • FUTA taxes are due on April 30, July 31, October 31, and January 31 each year, covering the three months before each date.
  • You only owe FUTA if you paid $1,500 or more in wages during a calendar quarter.
  • You file FUTA on Form 940, which you submit to the IRS along with your payment.
  • If you miss a important date, the IRS charges penalties and interest, so setting a calendar reminder is worth the thirty seconds.
  • Payroll services and accountants can handle FUTA filing and payment for you if you do not want to track it yourself.

How to know if you owe FUTA at all

FUTA applies to most employers, but not all. You owe FUTA if you paid wages to employees — not to yourself as a sole proprietor or partner. If you have one part-time employee, you owe it. If you hired a contractor and paid them as a 1099 contractor, you do not owe FUTA on that payment.

The $1,500 threshold applies per quarter. If you paid $1,200 in January and $400 in February, you hit the threshold in February and owe FUTA for that quarter. If you paid $1,400 total across all three months of a quarter, you do not owe FUTA for that quarter — but you might owe it for the next one if wages go up.

Your payroll service or accountant can tell you whether you owe FUTA. If you use a payroll service like Guidepoint, ADP, or Paychex, they track this automatically and will remind you of important date. If you handle payroll yourself, keep a running total of wages paid each quarter.

What form you file and where to send it

You file FUTA on Form 940, the Employer's Annual Federal Unemployment Tax Return. Despite being annual, you still make quarterly payments if you owe more than $500 in a quarter. The form itself is filed once per year, but the payments happen four times.

You can pay FUTA online through the IRS's Electronic Federal Tax Payment System, called EFTPS. You can also pay by phone, by mail with a check, or through your bank's bill-pay system if it supports IRS payments. Online payment is fastest and leaves a clear record.

Form 940 is due January 31 of the year after the tax year ends. For example, your 2024 Form 940 is due January 31, 2025. You can file it earlier if you want, and many employers file it in December to stay ahead. If you file late, penalties explore — currently 5% per month of the unpaid tax, up to 25%.

What happens if you miss a important date

The IRS charges a failure-to-pay penalty if you do not pay by the important date. The penalty is 0.5% of the unpaid tax per month, up to 25%. They also charge interest on the unpaid amount, which changes quarterly. Together, these can add up quickly on even a small missed payment.

If you realize you missed a important date, pay as soon as you notice. The penalty clock starts on the due date, not on the day you pay, so paying a week late costs less than paying a month late. Include a note with your payment explaining the delay if you want, though it does not change the penalty.

If you have a legitimate reason for missing the important date — a death in the family, a serious illness, a natural disaster — you can request reasonable cause relief from the IRS. You file Form 843 to request this. It does not always work, but it is worth trying if your situation was genuinely beyond your control.

Quarterly vs. annual FUTA payments

You pay FUTA quarterly only if you owe more than $500 in a quarter. If you owe $500 or less, you can wait and pay it with your annual Form 940 filing in January. This is called the quarterly threshold.

For example, if you owe $400 in the first quarter, you do not have to pay by April 30. You can hold that money and pay it in January with your Form 940. But if you owe $600 in the second quarter, you must pay by July 31 — you cannot wait until January.

Once you owe more than $500 in a quarter, you must pay by the important date for that quarter. You cannot choose to wait. Your payroll service will track this and tell you when a payment is due.

Setting up reminders and staying organized

The easiest way to avoid missing a important date is to put the four dates on your calendar now: April 30, July 31, October 31, and January 31. Set a reminder for two weeks before each date so you have time to gather your payroll records and make the payment.

If you use a payroll service, they usually send you a reminder email when a payment is due. Read those emails — they are not spam. If you handle payroll yourself, a straightforward spreadsheet with quarterly wage totals and payment dates takes ten minutes to set up and saves you from penalties.

Keep copies of your payment confirmations. If you pay online through EFTPS, print or save the confirmation number. If you mail a check, keep a copy of the check and the envelope. If the IRS ever questions whether you paid, these records prove you did.

FUTA vs. SUTA: Do not confuse them

SUTA is State Unemployment Tax Act. You owe both FUTA and SUTA if you have employees. FUTA goes to the federal government; SUTA goes to your state. They have different rates, different important date, and different forms.

SUTA important date vary by state. Some states require quarterly payments like FUTA; others require monthly or annual payments. Your state's labor department website lists the important date for your state. If you use a payroll service, they track both FUTA and SUTA and remind you of both important date.

Do not assume that paying FUTA means you have paid SUTA, or vice versa. They are separate taxes. If you miss a SUTA important date, your state charges its own penalties, which can be higher than federal penalties. Payroll services handle both automatically, which is one reason many employers use them.

Frequently Asked Questions

What if I do not have employees yet but I am planning to hire someone?

You do not owe FUTA until you actually pay wages. Once you pay your first employee $1,500 in a quarter, you owe FUTA for that quarter. You do not need to register or file anything in advance — just track your payroll and pay when the important date arrives.

Can I pay FUTA early?

Yes. You can pay any quarter's FUTA before the important date. There is no penalty for paying early. Some employers pay as soon as they know the quarter's wages to get it done, rather than waiting until the important date.

Do I owe FUTA on contractor payments?

No. FUTA applies only to employees. If you pay someone as a 1099 contractor, you do not owe FUTA on that payment. You issue them a Form 1099-NEC instead. Make sure your contractor is actually a contractor and not a misclassified employee, or the IRS may reclassify them and assess back FUTA.

What if my payroll service did not remind me and I missed the important date?

Pay when ready and contact the IRS to explain. You can call the IRS at 1-800-829-1040 or file Form 843 requesting reasonable cause relief. Missing a important date is your responsibility even if your service failed to remind you, but explaining the circumstances can help reduce penalties.

Do I need to file Form 940 if I did not owe any FUTA during the year?

Yes, you still file Form 940 even if you owe zero FUTA. You check the box indicating you had no tax liability and submit it by January 31. Filing shows the IRS you tracked your payroll and determined you did not owe anything, rather than straightforward not filing.