What Is the Purpose of Federal Form 941

question 21

Multiple Choice

What is the purpose of Federal Form 941?

• A)Summarize the amount of unemployment tax paid and due by the company
• B)Summarize the amount of federal income tax, Social Security, and Medicare withheld from employee paychecks for the quarter
• C)Summarize the amount of federal income tax, Social Security, and Medicare withheld from employee paychecks for the year
• D)Summarize of all your W-2 forms

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Definitions:

Progressive

Referring to a tax system in which the tax rate increases as the taxable amount increases.

Circular 230

A set of regulations governing tax professionals issued by the United States Treasury Department.

Tax Preparers

Professionals skilled in preparing and filing tax returns on behalf of individuals and businesses to ensure compliance with tax laws.

Tax Rate Structure

The method or system by which taxes are levied on income, goods, services, and properties, which can be progressive, regressive, or proportional.