How Do You File Unemployment Taxes For A Small Business?
Small businesses file many types of taxes, including an unemployment tax, which includes both a State Unemployment Tax, known as the SUTA, and a Federal Unemployment Tax, known as the FUTA. This is a tricky area because the unemployment rates, especially for SUTA, can change throughout the year. Consider hiring a tax professional who is better able to keep up with any changes to file and pay taxes for your business. Calculate the amounts of wages paid to each employee for the year. Usually this amount will be in your accounting software in a payroll report. If you are not using accounting software, use your records to calculate total wages paid to all employees. Enter the total amount in Box 3 of Form 940. Subtract the exempt portions of payments from the total amount of wages paid. These exempt amounts include pensions, retirements and benefits paid. Enter that amount in Box 4 of Form 940. Subtract any wages over $7,000 paid to each employee as the FUTA tax applies only to the first $
