Employment Taxes
- Withholding Taxes
- Social Security and Medicare Taxes
- Employer's Payroll Tax Liability
- State Employment Taxes
- Depositing Payroll Taxes
- Accuracy of Deposit Rule
- Employment Tax Payments With Return
- Federal Unemployment Tax (FUTA)
- Advance Earned Income Credit Payments
- Non-Employee Withholding Taxes
- Reporting Employment Taxes
- Household Employees
- Employment Tax Deposit Penalties
- Trust Fund Recovery Penalty
- Delinquent Employment Taxes
- Using a Payroll Service
More Tax Topics
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- Start-up Costs
- Depreciation
- Car Expenses
- Home Office Deduction
- Travel Expenses
- Hiring Workers
- Meals and Entertainment
- Retirement
- Top Tax Myths
- Per Diem Rates - IRS Publication 1542 Oct 2011 for Travel Within the Continental U.S (for employers who pay a per diem allowance to employees)
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Depositing Employment Taxes
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How to Deposit Employment Taxes
Employers have two methods for depositing employment taxes:
- Method 1:
- Mail the funds to cover the taxes
- Deliver the funds
- Method 2:
- Electronic Federal Tax Payment System (EFTPS)
Keep in mind, if you own either a C or S corporation, and provide services for the business, you are an employee of your own company and are treated the same as any other employee for employment tax purposes.
METHOD 1
a) Mail or Deliver the funds:
- Mail or deliver a check, money order, or cash with Form 8109, Federal Tax Deposit Coupon to a financial institution that is an authorized depository for federal taxes (usually your bank).
b) Deposit taxes through your bank:
- Complete Form 8109, which is a federal tax deposit (FTD) coupon that shows the type of taxes you're paying.
- Give Form 8109 to the bank with your deposit.
- The bank turns over your deposit to the U.S. Treasury.
New Employers and Form 8109:
After applying for a federal employer tax identification number (EIN) an employer will generally receive a federal tax deposit coupon book in about 5 to 6 weeks.
If you need a Federal Tax Deposit (FTD) coupon booklet, call 1-800-829-4933. Allow 5 to 6 weeks for delivery.
The IRS will keep track of the coupons you use and automatically send you a new supply.
Tip: If you run out of deposit coupons or have never received the coupon book and you have an Employer Identification Number (EIN) you may use Form 8109-B to make deposits. Get Form 8109-B at an IRS taxpayer assistance center. Be sure to have your EIN with you.
METHOD 2
a) Electronic Federal Tax Payment System (EFTPS).
- EFTPS is a free service provided by the Department of the Treasury.
- If you are not required to use EFTPS you may participate voluntarily.
- Call 1-800-555-4477 or visit: www.eftps.gov
- Generally, large employers are required to use EFTPS for all
depository taxes such as:
- Employment taxes
- Excise taxes
- Corporate income taxes
b) Banks:
- You may also be able to pay your taxes through your bank's payment service. Check with your bank.
c) Using a payroll service (recommended):
- If you use a payroll service to process your payroll, you may authorize them to also pay your employment taxes.
- Special enrollment rules for the IRS Electronic Federal Tax Payment System (EFTPS) may apply.
- Tip: If you enroll yourself to use the IRS Electronic Federal Tax Payment System separately from the payroll service, you'll have the flexibility of being able to make your own electronic payments.
Next:
Depositing Employment Taxes: When an Insufficient Employment Tax Deposit May Not Cause a Penalty
Related Links
- What Are Payroll Withholding Taxes
- Who Pays Social Security and Medicare Taxes?
- Social Security and Medicare Tax Rates
- Wage Base for Social Security Taxes
- Employer's Liability for Employment Taxes
- State Income Taxes
- State Unemployment Taxes (SUTA)
- Employer's SUTA Experience Rate
- Unemployment Insurance Claims
- Depositing Employment-Related Taxes
- Nonpayroll Tax Deposits
- When to Deposit Employment Taxes
- When To Determine Your Employment Tax Deposit Schedule
- How to Determine Your Employment Tax Deposit Schedule
- Payment of Employment Taxes With Form 941 (or Form 944)
- Who Pays Federal Unemployment Taxes (FUTA)?
- FUTA Tax Deposits
- When You Can Pay FUTA Taxes Annually With Form 940
- Payments Exempt from FUTA Tax
- What Are Advance Earned Income Credit Payments?
- Withholding Taxes and Advance Earned Income Credit Payments
- Advance Earned Income Credit Payments Treated as Tax Deposits
- Reporting Advance Earned Income Payments
- Taxes Withheld From Income Distributions Not Related to Employment
- Depositing Payroll Taxes versus Reporting Payroll Taxes
- Employment Tax Forms
- Employment Tax Forms Explained
- Zero Wage Return
- Schedule H, Household Employment Taxes
- Taxes Reported on Schedule H
- Schedule H and Form 1040
- Filing Extension and Schedule H
- Filing Schedule H When You're Not Required to File a Tax Return
- Federal Income Taxes for Household Employees
- IRS Employment Tax Penalty Refund Offer
- Employment Tax Deposit Penalties
- Order in Which Employment Tax Deposits Are Applied
- What Are Trust Fund Taxes?
- How the Trust Fund Recovery Penalty is Assessed
- Who is Responsible For the Trust Fund Recovery Penalty?
- What Should You Pay First-Debts to Business Creditors or Taxes?
- Paying Past Due Taxes
- Advantages of Using a Payroll Service
- Your Role When Using a Payroll Service
- What a Payroll Service Does
- State New Hire Registry
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