You may be asking yourself "What is the difference between Federal 940, 941 and 944 taxes?"

If you pay employees already, you are probably familiar with these taxes.   941 and 944 taxes are Federal FICA (Medicare and Social Security) withholdings as well as personal Federal withholding for the employee.   The employee and employer are each responsible to pay half of the total FICA tax to the government.   The employer is required to collect both halves of the FICA tax and the employee's federal withholdings and remit them to the government at regular intervals.   The 941 tax filings (paperwork) are submitted each quarter, although you may be required to deposit your tax money on a monthly basis or after each payroll cycle. The 944 tax is the same as the 941, but is filed and paid on an annual basis.   The IRS makes the determination on which tax form you will file and how often you need to deposit your tax withholdings depending on the size of your payroll.   940 tax is Federal Unemployment. Unless you are exempt, you are required to report/pay this tax on an annual basis in addition to your 941 or 944 taxes.  

Below is a link to the current year IRS Publication regarding Employer Taxes:
         http://www.irs.gov/pub/irs-pdf/p15.pdf

Also, if you are not already aware, each state has it's own regulations and requirements about Employee withholdings and Unemployment taxes.   Visit your state's department of revenue and department of labor websites for more information on state taxes.