Your payroll system accrues FUTA at 0.6%. The Department of Labor announces the credit reduction on November 10, 2026 - and it applies retroactively to every wage dollar you already paid this year.
State
—
Credit reduction applied
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%
FUTA-taxable wages (first $7,000 each)
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USD
FUTA at the normal 0.6%
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USD
Extra tax from the credit reduction
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USD
Extra per employee
—
USD
Total FUTA owed on Form 940
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USD
Shortfall against what you accrued
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USD
Days after the February 1, 2027 deadline
—
days
Late-payment penalty at 0.5% per month
—
USD
Keep this result. Export the worked figures as a .csv you keep, and set November 10 and February 1 alarms that fire in the browser without you opening the tool. $60 once · one licence key per person or team seat · An outside payroll accountant re-runs Form 940 Schedule A for one to two billable hours at US bookkeeping rates of $50-$150 per hour.
Caps every worker at the first $7,000 FUTA is charged on the first $7,000 of each employee's wages, not on total payroll. This is the single line people get wrong when they estimate the credit reduction on a spreadsheet.
2025 confirmed rates and the 2026 step Carries the confirmed tax-year-2025 rates (California 1.2%, U.S. Virgin Islands 4.5%) and the 0.3-point step each would take for 2026 if the state loan is still unpaid on November 10, 2026, so you can budget both.
Compares what you set aside with what you owe You enter the rate your payroll system has been accruing at - usually 0.6% - and the tool shows the dollar shortfall you have to find before the return is due.
Form 940 deadline and late-payment penalty Form 940 for tax year 2026 is due February 1, 2027. Enter the date you will actually pay and the tool applies the 0.5%-per-month late-payment penalty, capped at 25%.
Runs entirely in the browser Payroll headcounts and wage figures never leave the machine. The only outbound request the extension ever makes is licence-key validation.