Depositing and Reporting Withheld Taxes: Federal

Original Author: Ryan F. Donovan

Updating Author: Alice Gilman

Summary

This guide provides compliance guidance for HR and payroll professionals on requirements regarding federal income and employment tax withholding, depositing, and reporting. It explains the process of obtaining a federal Employer Identification Number (EIN) from the IRS, the different tax deposit schedules based on factors like deposit size and previous years' activities, and the use of forms such as IRS Form 941, Form 944, Form 945 and information returns such as Form W-2 and the 1099 series forms, for reporting taxable wages and withheld taxes. The guide also highlights the requirement to use the Electronic Federal Tax Payment System (EFTPS) for business tax payments, potential penalties for late deposits or filings, and the importance of correcting and reconciling payroll and tax figures periodically.