For federal unemployment taxes, how are they calculated?

Federal unemployment taxes (FUTA) are indeed reported and paid on a quarterly basis. The calculation involves employers paying a certain percentage of the wages they pay to their employees, which is reported on a quarterly tax return. This regular reporting aligns with the requirement that employers assess their tax obligations periodically rather than monthly, annually, or bi-weekly.

Employers must file Form 940 annually to report their FUTA taxes, but they are required to deposit their FUTA tax liability on a quarterly basis if the amount owed exceeds a certain threshold. This system ensures that the taxes are tracked consistently throughout the year, allowing for timely compliance with tax obligations and reducing the risk of accumulating large tax liabilities towards the end of the fiscal year.

Each of the other frequencies—monthly, annually, and bi-weekly—does not align with the federal guidelines for unemployment tax management, making them unsuitable answers in this context.