Form 940 is used by employers to report and pay federal unemployment taxes (FUTA). Employers are required to file this form annually to report wages paid to employees and calculate the amount of unemployment taxes owed. FUTA taxes fund unemployment benefits for workers who lose their jobs, and the amount owed is based on wages paid to employees, up to a certain limit. Employers are responsible for paying the FUTA tax; it is not withheld from employees’ wages. Form 940 is typically filed annually by January 31st for the previous year’s tax liability.