FHI, FICA, and FUTA

Related Topic

FHI, FICA, and FUTA are summarized in the following chart.

More information about federal taxation is available from the U.S. Internal Revenue Service's website: http://www.irs.gov/.

Acronym or Initialism	Description
FHI	Medicare. The letters "FHI" represent the Federal (Medicare) Hospital Insurance Trust Fund that is administered by the U.S. Department of the Treasury. Source: http://www.treas.gov/press/releases/reports/ssrr1993.pdf, page 2.
FICA	Social Security. Taxation related to the Federal Insurance Contributions Act (FICA) is commonly referred to as Social Security taxes. Employers typically file Form 941, the Employer's Quarterly Federal Tax Return. However, some employers must file Form 943, the Employer's Annual Tax Return for Agricultural Employees.
FUTA	Federal Unemployment Tax Act. To report employees' taxable wages and deposits of FUTA taxes, employers file federal Form 940, or in some cases may file Form 940–EZ, annually. Typically, FUTA tax liabilities are due each quarter or monthly, in accordance with federal guidelines. Form 940 is the Employer’s Annual Federal Unemployment Tax Return. In general, employers must file Form 940 or its equivalent EZ form if they paid at least $1,500 in wages during any quarter or had at least one employee work at least a part of one day in 20 different weeks. Note that different FUTA requirements apply to agricultural and household employers. Refer to federal regulatory guidelines.

Acronym or Initialism

Description

FHI

Medicare.

The letters "FHI" represent the Federal (Medicare) Hospital Insurance Trust Fund that is administered by the U.S. Department of the Treasury.

Source: http://www.treas.gov/press/releases/reports/ssrr1993.pdf, page 2.

FICA

Social Security.

Taxation related to the Federal Insurance Contributions Act (FICA) is commonly referred to as Social Security taxes.

Employers typically file Form 941, the Employer's Quarterly Federal Tax Return.

However, some employers must file Form 943, the Employer's Annual Tax Return for Agricultural Employees.

FUTA

Federal Unemployment Tax Act.

To report employees' taxable wages and deposits of FUTA taxes, employers file federal Form 940, or in some cases may file Form 940–EZ, annually. Typically, FUTA tax liabilities are due each quarter or monthly, in accordance with federal guidelines.

Form 940 is the Employer’s Annual Federal Unemployment Tax Return.

In general, employers must file Form 940 or its equivalent EZ form if they paid at least $1,500 in wages during any quarter or had at least one employee work at least a part of one day in 20 different weeks.

Note that different FUTA requirements apply to agricultural and household employers. Refer to federal regulatory guidelines.

CAUTION: When the HIRE Act's payroll tax exemption for Social Security taxes was in effect, a FICACREDIT tax code was also processed. Now that the HIRE Act's provision for reduced FICA is no longer in effect, the FICACREDIT tax code should be inactivated and end dated for any employees who still have a FICACREDIT record.