For People
Tax Professionals Business Owners Reporting Agents Aggregate Filers Developers Electronic Return OriginatorFor Industries
Law Firms Real Estate GIG Economy Healthcare Government Entities Financial Institutions Large Enterprises Small & Medium BusinessesCustomer Stories
Learn moreStandard Features
Data Import
CSV Upload Secure Upload Google Sheets Upload Ready Return New Copy 941 Return Copy & Paste API IntegrationData Validation
Internal Audit Check USPS Address Validation TIN Matching IRIS Business ValidationDistribution Center
Online Access Postal Mailing Domestic Mailing Foreign Mailing Print FormsAdditional Features
Address Book Record Keeping Buy Credits BanditCash (Wallet)Pro Features
BanditCollab (Team Management) BanditConnect (Client Management) Insightful ReportsIntegrations
Excel Xero QuickBooks Zoho Books FreshBooks Sage IntacctStandard Features
Invite Beneficial Owners
Pull Data from Address Book
Pull Data from Address Book
A week for Free Correction
AI-Based Data Extractor
Instant Status Updates
Exemption Checker
Free Resubmissions
Learn MorePro Features
Staff Management Client Management Insightful ReportsIntroducing Bandito Package
Request DemoRequest W-9
Get 1st W-9 for Free
TIN Matching
Bulk Upload
Data Validations
Store & Manage W-9 in One place
Learn MoreFillable W-9
Complete, & Share W-9 for Free
E-Sign W-9
Data Validations
Download & Print W-9
Complete W-9 anywhere with our Mobile App
Learn MoreIntegrations
Excel Xero QuickBooks Zoho Books FreshBooksCybersecurity Measures
Two Factor Authentication (2FA) PII Data Security Database Management Defense In-Depth Security Cloud Infrastructure Security Data Loss PreventionFraud Prevention
Identity Verification Fraud Patterns IdentificationSecurity Standards
Security Policies Security Awareness Training Escalation MatrixCompliance
SOC 2 Compliance HIPAA Compliance CCPA Compliance PCI DSS ComplianceForm 941 for Q1, 2025, is due by April 30, 2025. E-File Now!
New Feature Alert: TaxBandits has introduced the ‘Ready return’ option to simplify your filing for this quarter. Know more
Form 940 is used to report FUTA taxes, while Form 941 is used to report federal income tax withheld, Social Security, and Medicare tax withholding.
Check out the table below to find the key differences between 940 and 941.
| Form 940 | Form 941 | |
|---|---|---|
| Purpose | Form 940 deals exclusively with the Federal Unemployment Tax (FUTA), which is not withheld from employees' wages. Employers pay FUTA tax based on the wages they pay to employees. | Form 941 reports payroll taxes, which include federal income tax withholding, Social Security tax, and Medicare tax. These taxes are withheld from employees' wages and are also matched and paid by employers. |
| Due Date | Due Annually (January 31) | Due Quarterly (April 30, July 31, October 31 and January 31) |
| Tax rates | The FUTA tax rate is 6.0%, which applies to the first $7,000 paid to each employee as wages during the year. |
|
| Who is Liable | FUTA tax is only paid by the employer; it is not withheld from the employee's wages |
Both employee and employer contribute to FICA tax |
| Deposit Requirements |
|
|
It's essential to fully understand your tax responsibilities with these forms to avoid penalties or owing money to the IRS.
Filling out forms 940 and 941 can feel difficult, but you don't have to deal with that stress anymore. Let TaxBandits simplify the process for you!
TaxBandits offers built-in features to automate your filing process, ensure error-free submissions with internal checks, and provide multiple payment options for your tax payments.
TaxBandits supports all the required forms, including 940 Schedule A, 941 Schedule B, 8453-EMP & 8974, to be attached with your 940 and 941 filing.
Explore our exclusive features, crafted to meet the needs of every
business and tax pro.
Are you a Developer looking for an API Solution? Click here.
Looking to access your 1099/W-2/1095 Forms from your payer/employer? Click here.