If your business has employees, you must pay employment taxes. The payment system can be a bit confusing, so this article discusses how to go about depositing employment taxes with the IRS.

Depositing Employment Taxes

To pay employment taxes, you must deposit the money with the IRS. As is typical with tax situations, the payments are not actually made to the IRS. Instead, you must deposit the employment taxes with a federal depository. Moving the burden to the private sector, the IRS requires most banks to act as depositories. If your business has just started hiring employees, ask you bank if they act as a depository. If they do not, you may want to change banks.

To deposit the taxes, you forward money per the bank specifications. You will also need to file a Federal Tax Deposit Coupon, Form 8109, with the deposit. The IRS typically sends these forms to you at the beginning of each calendar year. If you don’t receive any, you can download the form from the IRS site or ask your tax professional.

When To Deposit

You must deposit employment taxes either once or twice a month. The IRS will send you a schedule at the end of each year for the subsequent year. As a general rule, you want to file within a few days of each pay period.

Failure To Deposit

Collecting employment taxes is a high priority of the IRS. Since the taxes include money deducted from an employee’s paycheck, the IRS views an employer’s non-payment as a form of theft. If you fail to pay, you can expect the IRS to come down hard on your business and, potentially, shut it down. In short, make absolutely sure you deposit the employment taxes.

In Closing

There is no other way to put it – paying employment taxes is a pain. Just make sure you pay them to avoid a nasty audit by the IRS.

Please Rate this Article

5 out of 54 out of 53 out of 52 out of 51 out of 5 

Not yet Rated

Click the XML Icon Above to Receive Taxes Articles Via RSS!

---

Join Our Newsletter To Discover New Articles and Chances To Win Hot Products!
First Name:
Email:

---

Additional Articles From - Home | Finance | Taxes

• REAPmoreWealth Announces New "Own Nothing, Control Everything" Real Estate Investment Strategy - By : Dave Salcido
  
• Corporations avoid taxes – How they do it? - By : ratetake
  
• SCF Group Reveals Secrets- Why Offshore Companies are Better for Privacy - By : Roy Annewart
  
• SCF Group Launches its Offshore Formation Services Online - By : Roy Annewart
  
• SCF Group Expands its Services Now Offering Property Investment in the UK and Abroad - By : Roy Annewart
  
• SCF Group Reveals the Benefits of Offshore Asset Protection and Advice Online - By : Roy Annewart
  
• McCain's tax cuts won't help you but these tax strategies will. - By : Drew
  
• Drew Miles Reviews Ways to Save on Your Taxes - By : Drew
  
• Introduction To Vat Registration And Accounting For Value Added Tax - By : Terry Cartwright
  
• Things You Need To Know Before The Vat Inspection - By : Terry Cartwright