FUTA is an acronym for Federal Unemployment Tax; an employer payroll tax calculated on the first $7,000 of gross wages paid to each employee. Form 940 is used to report FUTA to the IRS on an annual basis.

Bookkeeping – Payroll Cycles (Lesson 32)

Payroll Cycles

Similar to the bookkeeping cycles, payroll cycles have many frequent activities, fewer incremental requirements and one important end of the year report. This lesson explains these respective cycles and how they tie together for the final year-end report. Other lessons in this section of the website go into some details about various functions of payroll and are linked when appropriate.

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