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Unemployment compensation is
paid to eligible workers who lose their jobs. The money to pay the
unemployment compensation comes from unemployment taxes paid at both the
state and federal levels. The federal tax is called the Federal
Unemployment (FUTA) Tax. You, as an employer, pay the FUTA
tax. It is not withheld from your employees pay. The FUTA
tax return is filed once a year on Form 940 or on Form 940-EZ. If
you incur $100 or less in tax liability in one year, you can pay the
balance due when you file the return. However, when the Form 940
tax liability at the end of any quarter exceeds $100, you must deposit
the tax by the end of the next month. Use Form 8109 to make
required tax deposits. The form identifies the amount and type of
tax being deposited.
These forms and accompanying payments are not filed with the
IRS. Instead, they are deposited with any authorized financial
institution or federal reserve bank. If you run out of your
pre-printed EIN but have not yet received your first supply of forms,
then Form 8109-B can be used. Form 8109-B is available at most IRS
local offices or by calling 1-800-829-1040. The IRS will send you
a supply of appropriate forms when you file Form SS-4.
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