Definition of Terms
Federal Insurance Contributions Act is the combined taxes for Social Security and Medicare payroll taxes. The payroll taxes are frequently referred to as FICA taxes.
The Federal Unemployment Tax Act (FUTA) is a federal law. It requires employers to pay a certain percentage on their employee's wages (up to a maximum wage limit) as a payroll tax to help fund unemployment compensation benefits for separated employees.
Reconciling federal payroll taxes (federal income tax, employee and employer share of social security and Medicare taxes) for the quarter.
State Unemployment Tax Act (SUTA) or State Unemployment Insurance (SUI) is an employer-paid insurance program that helps workers who are unemployed through no fault of their own. It provides temporary financial help to qualified individuals, based on their previous earnings, while they are looking for other work. Employer taxes and reimbursements support the Unemployment Trust Fund.
The form that an employer must provide to each employee and the Social Security Administration at the end of the year. The W-2 form reports an employee's annual wages and the amount of taxes withheld from his or her paycheck.
The form that an employer must provided to Social Security Administration at the end of the year. The form W-3 contains totals of the amounts reported on the employee's W-2 forms, acting as a “reconciliation” of those forms.
Form 940 reconciles your annual Federal Unemployment Tax Act (FUTA). The FUTA tax applies to the first $7,000 paid to each employee during a calendar year after subtracting any exempt payments.