Employment Taxes

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This section explains the basic tenets of employment taxes and the respective reporting guidelines.  In addition to compliance parameters, I explain the differences between sub-contractors and employees.  Compliance issues are presented along with the associated deadlines.

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    Federal Unemployment Tax Act or FUTA for short is a part of the Internal Revenue Code and is an employer tax on wages paid to employees.  It is used to fund unemployment benefits.  The tax is paid on the first $7,000 of wages paid to every employee.  It is reported via Form 940 https://businessecon.org/resources/ .  ...
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