Asked by Nicholas Paradas on May 12, 2024
Verified
What is true regarding FUTA?
A) It is a payroll tax owed by the business and reported annually on a tax form 940.
B) It is a payroll tax owed by the business and reported quarterly on form 941 and annually on tax form 944.
C) It is a payroll tax owed by the business and reported quarterly on form 940.
D) It is a payroll tax shared by the employer and employee and reported quarterly on form 941 and annually on tax form 944.
FUTA
The Federal Unemployment Tax Act, which imposes a payroll tax on businesses to fund state workforce agencies.
Tax Form 940
A federal tax form in the United States used by employers to report annual Federal Unemployment Tax Act (FUTA) tax.
- Comprehend the obligations of employers regarding different payroll taxes and liabilities.
Verified Answer
RM
Roger MikhailMay 13, 2024
Final Answer :
A
Explanation :
FUTA is a Federal Unemployment Tax Act that is a payroll tax paid entirely by the employer and reported annually on tax form 940.
Learning Objectives
- Comprehend the obligations of employers regarding different payroll taxes and liabilities.
Related questions
The Employer Incurs a Payroll Tax Expense Equal to the ...
Employers with a Payroll Tax Liability of Less Than $2,500 ...
FICA Taxes Are Collected Equally from the Employee and the ...
Employees Typically Receive a Paycheck on a Weekly,biweekly,semimonthly or Monthly ...
The Entry to Record the Accrual of the Employer's Payroll ...