What tax does Form 940 report?

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Multiple Choice

What tax does Form 940 report?

Explanation:
Form 940 reports FUTA unemployment taxes. FUTA stands for the Federal Unemployment Tax Act, and these taxes are paid by employers to fund federal unemployment benefits. This is different from FICA payroll taxes (Social Security and Medicare) and from state unemployment taxes (SUTA), which are handled separately with state forms. So Form 940 specifically captures the employer’s FUTA liability for the year.

Form 940 reports FUTA unemployment taxes. FUTA stands for the Federal Unemployment Tax Act, and these taxes are paid by employers to fund federal unemployment benefits. This is different from FICA payroll taxes (Social Security and Medicare) and from state unemployment taxes (SUTA), which are handled separately with state forms. So Form 940 specifically captures the employer’s FUTA liability for the year.

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