Publication 5258 - Federal Tax Deposits Page 24
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32Glossary
BUSINESS DAY – A business day includes all calendar days
ty and Medicare tax.
Form 944 is used only by small
except Saturdays, Sundays, and legal holidays in the Dis-
employers who are notified by IRS to file Form 944.
trict of Columbia.
Taxpayers may request to change to Form 941 or to Form
944 between January 1 and April 1.
DEPOSIT PERIOD – The period of time during which an
employer accumulates tax liability for paying to the United
FTD – Federal Tax Deposit
States Treasury on the next due date. Deposit periods vary
depending on which deposit schedule the employer follows
FUTA – Federal Unemployment Tax Act
(see monthly deposit schedules and semiweekly deposit
schedules).
LOOKBACK PERIOD – If you have filed only Form 941, the
lookback is a 12-month period, covering four quarters,
EIN (Employer Identification Number) – A permanent, nine-
ending June 30 of the prior year. If you filed Form 944 in
digit number IRS issues to each business to identify the busi-
either of the two previous years, or you are filing Form 944 in
ness’ tax account. A business should have only one EIN
the current year, the lookback period is the second prior cal-
and should use it when making tax deposits and filing all
endar year. The total tax liability reported during that period
required federal tax returns.
is reviewed annually to determine which Deposit Schedule
an employer is to follow for the current calendar year.
EFTPS (Electronic Federal Tax Payment System) – A free
system provided by the United States Treasury that allows
MONTHLY SCHEDULE DEPOSITS – The Federal Tax Depos-
for the electronic transfer of funds from taxpayer accounts
it Schedule followed by those employers whose total taxes
directly to the United States Treasury’s general account. This
were $50,000 or less during their most recent “Lookback
is a convenient, time-saving method for employers to make
Period.” Tax deposits for payrolls paid during one month are
their required Federal Tax Deposits using a telephone or
due by the 15th day of the next month.
Internet.
PUBLICATION 15 (Circular E), Employer’s Tax Guide – IRS pub-
FEDERAL TAX DEPOSIT SYSTEM – Method established for
lication which provides information to employers regarding
transferring taxes from the business to the United States Trea-
their responsibilities for federal taxes. It also contains tables
sury. Deposits can be made directly from your bank account
for income tax withholding.
to the United States Treasury by phone or Internet using
EFTPS.
SEMIWEEKLY SCHEDULE DEPOSITS – The Federal Tax Depos-
it Schedule followed by those employers whose total pay-
FICA (Federal Insurance Contributions Act) – A law that pro-
roll taxes were more than $50,000 during their most recent
vides for social security and Medicare taxes.
“Lookback Period.” Tax deposits for payroll paid during the
deposit period from Wednesday through Friday are due
FORM 940, Employer’s Annual Federal Unemployment Tax
by the following Wednesday. Tax deposits for payroll paid
Return – Return reporting federal unemployment tax, due
during the deposit period from Saturday through Tuesday
January 31st after the tax year ends.
are due by the following Friday.
FORM 941, Employer’s Q
Federal Tax Return – Return
uArterly
TRUST FUND TAX – The money an employer is required
reporting federal income tax withheld, and employer and
to withhold from an employee’s wages (withheld federal
employee shares of social security and Medicare. It is due
income tax, social security and Medicare taxes) and peri-
the last day of the month following the end of the quarter.
odically pay to the United States Treasury. Federal income
tax withheld is then credited against tax due on employ-
FORM 944, Employer's ANNUAL Federal Tax Return -
ees’ individual tax returns. Social security and Medicare tax
Annual return reporting federal income tax withheld,
withheld are the employees’ contribution toward old-age,
and employer and employee shares of social securi-
survivors, disability, and hospital insurance benefits.
24
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial