Payroll taxes
| How is the joint federal-state unemployment insurance program funded? Federal and state unemployment taxes fund the joint federal-state unemployment insurance program. Federal unemployment tax revenues fund accounts in the federal Unemployment Trust Fund (UTF) that pay for federal and state unemployment insurance program administration costs, the federal portion of extended benefits, and loans to State Unemployment Trust Funds. State unemployment tax revenues fund State Unemployment Trust Funds, which pay regular benefits and the state portion of extended benefits. Read more about unemployment taxes here. |
| Unemployment insurance |
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Payroll taxes is a term the Internal Revenue Service (IRS) uses to refer to taxes related to Form 941: Employer’s QUARTERLY Federal Tax Return that are withheld from employee paychecks. The quarterly form includes the following taxes:[1][2][3][4]
- Federal income taxes
- Social Security and Medicare taxes
Employers also have to pay unemployment taxes on employee wages to support the unemployment insurance program. Federal unemployment taxes are reported on Form 940: Employer’s Annual Federal Unemployment (FUTA) Tax Return.[5][6]
Unemployment taxes and payroll taxes are both types of employment taxes.
See also
- Unemployment insurance
- Unemployment insurance fraud
- Unemployment insurance fraud recovery
- Unemployment taxes
- Unemployment Trust Fund
- Unemployment filings during the coronavirus (COVID-19) pandemic, 2020-2021
- State government plans to end federal unemployment benefits related to the coronavirus (COVID-19) pandemic, 2021
External links
Footnotes
- ↑ The Balance Small Business, "What's the Difference Between Payroll Taxes and Employment Taxes?," accessed July 12, 2021
- ↑ Internal Revenue Service, "Instructions for Form 941 (Rev. June 2022)," accessed December 15, 2022
- ↑ Internal Revenue Service, "Form 941 for 2022: Employer’s QUARTERLY Federal Tax Return (Rev. June 2022)," accessed December 15, 2022
- ↑ H&R Block, "What is payroll tax?," accessed July 12, 2021
- ↑ Internal Revenue Service, "Form 940 for 2022: Employer’s Annual Federal Unemployment (FUTA) Tax Return," accessed December 15, 2022
- ↑ Internal Revenue Service, "2022 Instructions for Form 940," accessed December 15, 2022
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