Utah Contractor Practice Exam 2025 - Free Contractor License Practice Questions and Study Guide

The frequency of reporting FICA and any withheld income tax via Form 941 is essential for employer compliance with federal tax regulations. Form 941 is the Employer's QUARTERLY Federal Tax Return, meaning employers are required to file this form quarterly. Hence, employers must report these taxes every three months.

This reporting schedule allows the Internal Revenue Service (IRS) to collect the necessary federal income taxes, Social Security taxes, and Medicare taxes from employees' wages in a timely manner. Filing quarterly gives businesses the opportunity to reconcile payroll information and remit the appropriate amounts to the IRS, while also ensuring accurate record-keeping and accountability.

Given that other options like monthly or longer intervals do not align with the IRS's established guidelines for Form 941, the quarterly basis of reporting is the correct answer. Employers need to be diligent about their reporting schedules to avoid penalties and ensure compliance with tax regulations.