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Collateral circulation is necessary to prevent complications caused by:
Form 941
A federal tax form used by employers to report quarterly income taxes, social security tax, and Medicare tax withheld from employees' paychecks.
Form 940
A tax form filed by employers to report annual Federal Unemployment Tax Act (FUTA) tax.
Form W-2
An IRS tax form used in the United States to report wages paid to employees and the taxes withheld from them.
Payroll Taxes Collected
Taxes that are withheld from employees' wages by their employer and remitted to the government, including amounts for social security and Medicare.
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