Publication 5258 - Federal Tax Deposits Page 23
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summary
c hapterSix
Y
ou have learned the “ABCs” of FTDs — the basic rules for making federal tax
deposits of employment taxes. In a nutshell:
Who is required to make deposits?
Employers with an employment tax liability of $2,500 or more in any calendar
quarter and $2,500 or more in the prior quarter, or a tax liability of less than $2,500
in the prior quarter and a $100,000 next-day deposit obligation in the current quar-
ter.
What is required to be deposited?
Employees’ federal income tax withholding and share of FICA tax, along with the
employer’s share of FICA tax. Employers may also be required to deposit FUTA tax.
When must the deposits be made?
It depends on the employer’s deposit schedule. Generally, new employers and
small employers will have a monthly schedule. Under the monthly rule, each
month's taxes are required to be deposited on or before the 15th day of the follow-
ing month.
Under the semiweekly rule, the deposits are due based on a schedule which divides
the calendar week into two (semiweekly) sections.
The deposit for a pay date of Wednesday, Thursday or Friday must be made
›
on or before the following Wednesday.
The deposit for a pay date of Saturday, Sunday, Monday or Tuesday must be
›
made on or before the following Friday.
hoW is the money deposited?
for additional information
Electronically by telephone or Internet through EFTPS. Remember that EFTPS is a
In addition to your tax advisor,
free, convenient, time efficient way to deposit taxes.
you may obtain IRS assistance
through the following:
Taxes reported on Forms 941 and 944 are part of your employee’s wages or sala-
› EFTPS website:
ries, which are being entrusted to you to pay to the United States Treasury. It is your
› EFTPS Customer Service: 800-
employees' income tax, FICA (social security and Medicare) tax (or "Trust Fund
555-4477
Taxes"), along with the portion of FICA taxes paid by you as the employer. That
› IRS web site:
is why the employees’ portions are called “Trust Fund Taxes.” Form 940 taxes are
paid by you, the employer, to provide for unemployment compensation to work-
› Toll free telephone: 800-829-
ers who have lost their jobs.
4933
› Schedule appointment at local
You also learned there are costly penalties for not making the required federal tax
IRS office by calling toll free
deposits. Good business practices dictate that paying penalties is not the best use
844-545-5640
of your valuable financial resources.
› Publications: Publication 15
(Circular E), Employer’s Tax
Thank you for taking this opportunity to become better acquainted with the feder-
Guide.
al tax deposit system. Best wishes for success in your business.
23
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