The tax is levied on employers, employees, and certain self-employed individuals. Allows taxpayers to file tax information for both federal and state income tax returns with home computers and tax preparation software. This form will reflect state and federal taxes, social security, Medicare wages, and tips withheld. This form determines how much of your paycheck is withheld for federal income taxes. FUTA provides for payments of unemployment compensation to workers who have lost their jobs.
Most employers pay both a federal and a state unemployment tax.
For information, refer to the Instructions for Form 940. This deals with all the money, goods and property you receive that must be included as taxable income. The goal is to reduce employer tax reporting burden by making a unified employment tax available for all employers. All businesses except partnerships must file an annual income tax return. Partnerships file an information return.