How to File QuickBooks Form 940 Step by Step

When managing payroll for a small business, ensuring you correctly file your QuickBooks Form 940 is crucial to stay compliant with federal unemployment tax (FUTA). If you're not sure where to start, this article walks you through preparing and filing Form 940 in both QuickBooks Online and Desktop, handling adjustments, and avoiding common errors. And if you run into trouble, you can reach support at +1(866)500-0076.

Learn how to correctly prepare and file QuickBooks Form 940 for your business’s FUTA tax using QuickBooks Online or Desktop — detailed steps, troubleshooting tips, and FAQs.

What Is QuickBooks Form 940 & Why It Matters

Form 940 is the Employer’s Annual Federal Unemployment (FUTA) Tax Return, which reports wages subject to FUTA and the taxes paid. QuickBooks supports this form across its payroll products (Online and Desktop).

Failing to file or underreporting FUTA liability can lead to penalties and interest. That’s why having a reliable workflow inside QuickBooks—whether via QuickBooks Form 940 payroll tax features, QuickBooks FUTA tax setup, or QuickBooks annual federal unemployment tax return process—is essential.

How to Prepare Form 940 in QuickBooks

In QuickBooks Desktop (Pro, Premier, Enterprise)

1. Ensure your QuickBooks Desktop has the latest updates and your payroll subscription (Standard or Enhanced).

   
   

2. Go to the Employees menu → Payroll Forms & W-2s → Process Payroll Forms.

   
   

3. In the File Forms section, choose Annual Form 940 / Schedule A.

   
   

4. Select the correct tax year and complete the “interview” steps, reviewing all employee wages, exemptions, and adjustments.

   
   

5. Use Check for Errors to ensure there are no computational mistakes.

   
   

6. If e-file is available (QuickBooks Desktop Payroll Enhanced), you may submit directly. Otherwise, print and mail the form.

In QuickBooks Online

1. In QBO, navigate to Taxes → Payroll Tax.

   
   

2. Under Annual Tax Forms, select Form 940 for the relevant year.

   
   

3. QBO will prefill many fields from payroll data; verify employer ID, total wages, taxable wages, and any adjustments.

   
   

4. If there are pending tax dues, QBO may prevent printing until those are recorded. In that case, record the payment first.

   
   

5. After everything looks correct, you can e-file (if enabled) or print and mail.

Troubleshooting & Common Pitfalls

• Pending dues prevent printing: In QuickBooks Online, you often can’t print Form 940 if there are outstanding tax liabilities. You may need to go to Taxes → Payroll Tax → Record Payment first.

  
  

• Overdue alerts in Desktop: If QuickBooks Desktop flags your 940 as overdue, check that your pay schedule is set to Annually.

  
  

• Amount differences or miscalculations: Sometimes payroll items (like fringe benefits, retirement plans, GTLI) have the wrong tax tracking type that incorrectly included them in FUTA. Edit those payroll item settings.

  
  

• Correcting mistakes (amendments): If a previously filed QuickBooks 940 is incorrect, QuickBooks Desktop Payroll Enhanced lets you file a corrected return (not a separate “940-X” form).

  
  

• Retrieving past forms: To access archived 940 or 941 forms, go to Taxes → Payroll Tax → Filings → Archived forms and filings.

Best Practices & Tips

• Back up your QuickBooks company file before making major changes.

• Always verify your state unemployment (SUI) tax data because that interacts with FUTA credits.

• Check for overpayments or liabilities > $100,000 which may require alternative payment routes (e.g. via EFTPS) in Desktop mode.

• Maintain supporting documentation for any adjustments or exemptions in case of audit.

• Use Check for Errors or validation tools in QuickBooks before submission.

• Monitor changes in FUTA tax rate or credits, especially if your state has high SUI taxes—the available credit against FUTA may vary.

Conclusion

Filing QuickBooks Form 940 doesn’t have to be intimidating. Whether you use QuickBooks Desktop or Online, following the correct workflow—verifying wages, checking for errors, recording payments, and submitting or printing—can keep your business compliant and avoid penalties. If you ever feel stuck with the QuickBooks Form 940 payroll tax process or need one-on-one support, don’t hesitate to reach us at +1(866)500-0076 for guidance.

FAQs (Frequently Asked Questions)

Q1: Can I e-file Form 940 inside QuickBooks?

Yes, in QuickBooks Desktop Payroll Enhanced you can e-file and e-pay federal forms including 940. In QuickBooks Online, e-filing is also supported if your account is configured for automated filing.

Q2: What if I made an error on a previously filed 940?

You can file a corrected return using the original 940 for that tax year (Desktop Enhanced supports corrections).

Q3: Why can’t I see the option to print 940 in QuickBooks Online?

Often because there are pending dues associated with that tax. You must record those payments first before printing.

Q4: How do I retrieve prior year Form 940 or 941 in QuickBooks?

Go to Taxes → Payroll Tax → Filings → Archived forms and filings, filter by form type and year, then click View.

Q5: How do I avoid FUTA miscalculations in Form 940?

Ensure payroll item tax tracking types are correct (i.e. exempt items aren’t mistakenly added), cross-check employee wages, and use QuickBooks’ built-in Check for Errors tool before filing.

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