under the medical care provisions of FICA. As an employer, you must withhold a percentage of these taxes from employee and match the withholding amount.
In general, you must deposit these taxes by check or cash to an authorized financial institution, typically your bank. Check with your tax professional to make sure you are not required to use the Electronic Federal Tax Deposit System (EFTPS). Regardless of the payment method, you will then report them on Form 941, the Employer’s Quarterly Federal Tax Return Federal Unemployment Tax (FUTA) FUTA is a combined federal and state program that provides unemployment compensation to the unemployed. As a business owner, you are solely responsible for paying this tax, to wit, nothing is withheld from the paychecks of your employees. FUTA is determined by using Form 940, but you are encouraged to use a tax professional to determine payment amounts.
Employment taxes can be frustrating for a small business owner. They are, unfortunately, a necessary evil as your business grows.
Article Source: http://www.ArticleJoe.com
Richard A. Chapo is with BusinessTaxRecovery.com - providing information on taxes.
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