Florida General Contractor Practice Exam

Which form is used to deposit federal and FICA taxes with a local bank?

1. Form 1040

2. Form W-2

3. Form 941

4. Form 1099

The correct answer is: Form 941

Form 941 is the appropriate form used for reporting and depositing federal income taxes and Federal Insurance Contributions Act (FICA) taxes. Employers must file Form 941 quarterly to report the wages paid to employees and the taxes withheld from their paychecks, including federal income tax, Social Security tax, and Medicare tax. This form is critical for employers as it ensures that they are compliant with federal tax laws and provides the IRS with information on the tax amounts they are remitting. The timely and accurate submission of Form 941 helps businesses avoid penalties and ensures that they contribute their share to federal programs through proper tax administration. In contrast, Form 1040 is an individual income tax return, Form W-2 is issued to report annual wages and tax withholding for employees, and Form 1099 is used to report various types of income other than wages, salaries, or tips. These forms serve different purposes and are not utilized specifically for the deposit of federal and FICA taxes with a local bank.