IRS Form 940 is a form primarily used by employers to pay the Federal Unemployment Tax Act (FUTA) tax when they pay more than $1,500 of wages to employees during a calendar quarter. Those who had more than one employee for more than 20 total weeks in a calendar year must also file IRS Form 940. Payments toward the FUTA tax balance must be made via the Electronic Federal Tax Payment System (EFTPS). Filing late, not filing, or making late payments will result in penalties at a predetermined rate. One can amend this form by filing another IRS Form 940.