Federal Tax Deposit

HR Glossary for HR Professionals

Glossary of the most common HR terms and acronyms to assist professionals navigating the ever-growing and ever-changing world of HR terminology.

Federal Tax Deposit

What is a Federal Tax Deposit?

A federal tax deposit is a payment that an employer makes to the IRS in regards to the taxes it withholds from its employees’ wages (among other required amounts). 

The payments include federal income tax, and employer and employee social security and Medicare taxes—as well as Federal Unemployment Tax (FUTA), which is paid separately and is not withheld from employees’ wages.

How Does an Employer File a Federal Tax Deposit?

Employers file quarterly federal tax deposits using Form 941, which includes federal income tax from workers’ wages and social security and Medicare taxes from the employer and employees, as well as withholdings on sick pay and supplemental unemployment benefits. 

Annual FUTA payments are made using Form 940.

When are Federal Tax Deposits Due?

Federal tax deposits are due on different dates, depending on the type and size of the reporting organization. 

To find the appropriate form for reporting your information, utilize the IRS’s employment tax due dates page. Employers can also e-file employment tax forms using the Electronic Federal Tax Payment System (EFTPS) to save time and receive an acknowledgement within 24 hours. 

Additionally, organizations can submit the forms or have a tax professional file the appropriate documentation.

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