What form is used to report unemployment taxes to the IRS?

• A. Form 940.
• B. Form 941.
• C. Form 1040.
• D. Form W-2.

Answer: (A)

Unemployment taxes for employers are reported to the IRS on Form 940. This is the Employer's Annual Federal Unemployment Tax Return, which calculates the FUTA tax due for the year and any credits you can claim for state unemployment taxes. Form 941, in contrast, is used to report and pay federal payroll taxes withheld and the employer's share of Social Security and Medicare on a quarterly basis, not unemployment tax. Form 1040 is the individual income tax return, and Form W-2 is the wage statement you provide to employees (and file to the IRS/SSA) showing wages and withholdings. So, the form specifically for reporting unemployment tax is Form 940.