Which of the following statements is true regarding Federal Unemployment Tax (FUTA)?

Multiple Choice

FUTA is a payroll tax owed by the business and reported annually on tax form 940.

FUTA is a payroll tax owed by the business and reported quarterly on form 941 and annually on tax form 944.

FUTA is a payroll tax owed by the employee and reported annually on tax form 940.

FUTA is a payroll tax shared by the employer and employee and reported quarterly on form 941 and annually on tax form 944.