 Hello in this lecture we will define form 940 according to fundamental accounting principles while 22nd edition the definition of form 940 is iris form used to report and employers federal unemployment tax Futa on an annual filing basis when we're thinking about the form 940 We're talking about a payroll tax when we think about the payroll tax We're usually thinking about the FICA tax social security and Medicare This is going to be the federal unemployment tax and it's only going to be an employer tax meaning It's not being taken out of the employee wages. It will be based however on the employee wages But it's paid by the employer only the form is going to be done annually rather than quarterly So the 941s reporting the Medicare and the Social Security and the federal unemployment will be on the quarterly 941s this will be at the end of the year