Final answer:
An employer that pays contributions to more than one state UI fund must file Form 940, which is the Employer's Annual Federal Unemployment (FUTA) Tax Return.
Step-by-step explanation:
An employer (ER) that pays contributions to more than one state Unemployment Insurance (UI) fund must file Form 940. Form 940 is the Employer's Annual Federal Unemployment (FUTA) Tax Return. It is used to report the amount of unemployment taxes an employer must pay on behalf of its employees. Employers must file Form 940 if they have paid wages of $1,500 or more in any quarter or have had an employee for a portion of a day in any 20 or more different weeks in a year.
It is important to distinguish Form 940 from other forms:
- Form 944 is the Employer's Annual Federal Tax Return, which is filed instead of Form 940 or Form 941 by smaller employers that have been notified by the IRS to do so.
- Form 941 is the Employer's Quarterly Federal Tax Return, which is used to report employment taxes, including federal income tax withholding and Social Security and Medicare taxes.
- Form 941c is a supporting statement to correct information previously reported on Form 941.
Therefore, the correct answer to the question is A. Form 940.