What percentage do you deduct for unemployment when you file 1099?

You do have a whole lot of different 1099-???? form available at the IRS gov website.

IF you do have a 1099-G in your hand for unemployment compensation income that your received in the tax year 2009 IF IT IS A 1099-G go to the 1040 tax form page 1 line 19 Unemployment compensation in excess of $2,400 per recipient line 19 $$$$.

For the 2009 tax year ONLY take the amount from the 1099-G box 1 $$$$ and subtract 2400 then enter that amount of $$$$ in box 19 as the taxable amount of unemployment compensation that you received in the year 2009.

What about the 940

Go to the IRS gov website and use the search box for Instructions for Form 940 (2009) What's the Purpose of Form 940?

Use Form 940 to report your annual Federal Unemployment Tax Act (FUTA) tax. Together with state unemployment tax systems, the FUTA tax provides funds for paying unemployment compensation to workers who have lost their jobs. Most employers pay both a federal and a state unemployment tax. Only employers pay FUTA tax. Do not collect or deduct FUTA tax from your employees' wages.

The FUTA tax applies to the first $7,000 you pay to each employee during a calendar year after subtracting any payments exempt from FUTA tax.

These instructions give you some background information about the Form 940. They tell you who must file the form, how to fill it out line by line, and when and where to file it.

Who Must File Form 940?