What form is issued to report annual unemployment taxes?

What form is issued to report annual unemployment taxes?

• A. Form 941
• B. Form 940
• C. Form W-2
• D. Form W-4

Answer: (B)

The form issued to report annual unemployment taxes is Form 940. This form is specifically used by employers to report their Federal Unemployment Tax Act (FUTA) liability and to pay any taxes owed. It summarizes the entire year's activity related to unemployment taxes, allowing the IRS to track what employers owe and ensure compliance with federal requirements. Form 941, on the other hand, is for reporting quarterly federal payroll taxes, including income tax withheld and Social Security and Medicare taxes, but it does not pertain to unemployment taxes. Form W-2 is issued to employees and reports wages paid and taxes withheld from those wages, while Form W-4 is used by employees to provide their employers with information about their tax withholding preferences. Therefore, these forms serve different purposes distinct from the reporting of annual unemployment taxes.

The form issued to report annual unemployment taxes is Form 940. This form is specifically used by employers to report their Federal Unemployment Tax Act (FUTA) liability and to pay any taxes owed. It summarizes the entire year's activity related to unemployment taxes, allowing the IRS to track what employers owe and ensure compliance with federal requirements.

Form 941, on the other hand, is for reporting quarterly federal payroll taxes, including income tax withheld and Social Security and Medicare taxes, but it does not pertain to unemployment taxes. Form W-2 is issued to employees and reports wages paid and taxes withheld from those wages, while Form W-4 is used by employees to provide their employers with information about their tax withholding preferences. Therefore, these forms serve different purposes distinct from the reporting of annual unemployment taxes.