Dept 940 Po Box 4115 Concord Ca 94524 (2025)

FAQs

What is DEPT 940? ›

Form 940 is an Internal Revenue Service (IRS) form used by employers to report taxes under the Federal Unemployment Tax Act (FUTA), a tax that provides funding for unemployment compensation for those who have lost employment.

They're likely contacting you because they're trying to reach a person who may owe a specific debt. Debt collectors can include collection agencies or lawyers who collect debts as part of their business. There are also companies that buy past-due debts from creditors or other businesses and then try to collect them.

Use Form 940 to report your annual Federal Unemployment Tax Act (FUTA) tax. Together with state unemployment tax systems, the FUTA tax provides funds for paying unemployment compensation to workers who have lost their jobs.

Employers who've paid $1,500 or more to any W-2 employee OR had at least 1 employee for 20 or more weeks of the year must file Form 940.

If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.

If you receive a notice from a debt collector, it's important to respond as soon as possible—even if you do not owe the debt—because otherwise the collector may continue trying to collect the debt, report negative information to credit reporting companies, and even sue you.

If you don't pay, the collection agency can sue you to try to collect the debt. If successful, the court may grant them the authority to garnish your wages or bank account or place a lien on your property. You can defend yourself in a debt collection lawsuit or file bankruptcy to stop collection actions.

Who does Portfolio Recovery collect for? Portfolio Recovery is a large debt collection agency that purchases and collects charged-off debts from various creditors, including credit card companies, retailers, banks, and other lenders.

Form 940 is used to report federal unemployment taxes, while Form 941 is used to report Medicare, Social Security, and federal income tax withholding. Generally speaking, Form 940 is due every January 31st, while Form 941 is due one month after the end of each quarter.

Generally, if you paid into state unemployment funds, you may receive a credit of up to 5.4% of FUTA taxable wages when you file your Form 940. If you're entitled to the maximum 5.4% credit, the FUTA tax rate after credit is 0.6%.

What is the 940 FUTA return? ›

Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return, is a type of return employers use to report their FUTA tax liability. Employers must pay federal unemployment, or FUTA, tax on wages paid to each employee.