When calculating your 940, do you use an employees gross wages before taxes and withholding or do you use the net/take-home pay?

Having accurate financial and tax information can provide peace of mind.  Thus, I completely understand the need for certainty, @raventearsx. I'm here to share some facts about Form 940 and how it's calculated.

When calculating your Form 940, you’ll want to add gross wages or salary for each employee. QuickBooks Online uses gross wages to calculate the amounts for various tax forms, including Form 940. This ensures the tax computations are correct and in compliance with the IRS regulations.

Check out this reference to learn about FUTA calculation steps: What is FUTA? Basics, examples, and calculation.

Moreover, here are some resources you can use to get insights about the filing process and how our payroll products support federal payroll forms:

• Understand federal forms and tax payments for 941, 944, 943, and 940
• Pay and file payroll taxes and forms electronically in QuickBooks Online Payroll

Please keep in touch if you have other concerns or additional payroll-related questions. I'll be around to help, @raventearsx.