FUTA taxes are reported on which form annually?

• A. Form W-2
• B. Form 941
• C. Form 1099-MISC
• D. Form 940

Answer: (D)

FUTA taxes are the federal unemployment tax that employers pay on the first portion of each employee’s wages, and they’re reported annually on Form 940, the Employer’s Annual Federal Unemployment Tax Return. This form gathers all taxable FUTA wages and computes the tax due, taking into account any state unemployment credit when applicable. Form 941 is a quarterly report for federal payroll taxes withheld and the employer’s share of Social Security and Medicare taxes, not FUTA. Form W-2 is the annual wage and tax statement issued to employees, and Form 1099-MISC is used to report payments to nonemployees. So for the annual FUTA filing, Form 940 is the correct one.