How to Deposit Employee Taxes
The IRS used to accept employee taxes using a Federal Tax Deposit Coupon, numbered Form 8109 and 8109-B. This form of payment became no longer accepted as of December 31, 2010. The IRS recommends that all businesses use the Electronic Federal Tax Payment System.
You can find out more about getting set up on this system by calling the IRS at 800-434-7338. Or sign up at the EFTPS website.
For the purposes of tax payments collected from employees for the federal government, you must complete Form 941. This form summarizes the tax payments made on behalf of employees. You can get instructions and Form 941 online.
During the first year as an employer, the company will have to make monthly deposits of employee taxes. Monthly payments must be made by the 15th day of the month following when the taxes were taken. For example, taxes collected from employees in April must be paid by May 15. If the date the deposit is due falls on a weekend or bank holiday, the payment is due on the next day the banks are open.
As your business gets larger, you’ll need to make more frequent deposits. Large employers that accumulate taxes of $100,000 or more in a day must deposit the funds on the next banking day.