Publication 1635 - Understanding Your Employer Identification Numbers Page 11
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32IV. Employment and Excise Taxes
1.
Employment Taxes
Definition:
• If you have one or more employees, you will generally be required to withhold
federal income tax from their wages.
• You also may be subject to social security and Medicare taxes under the Federal
Insurance Contributions Act (FICA) and federal unemployment tax under the
Federal Unemployment Tax Act (FUTA).
Form(s):
Social security, Medicare, and withheld income tax are usually reported on Form 941,
Employer’s Quarterly Federal Tax Return. The exceptions are:
• If your employees are agricultural workers, use Form 943, Employer’s Annual Tax
Return for Agricultural Employees.
• If your employee(s) does household work in your private, non-farm home (for
example, child care, housekeeping, or gardening work) attach Schedule H,
Household Employment Taxes, to your Form 1040.
NOTE:
Employers must report and pay required employment taxes for household domestic employees on
Schedule H attached to Forms 1040 or 1040A. While withheld amounts no longer have to be deposited
on a monthly basis, employers do need an employer identification number (EIN) to include on Form W-2
and Schedule H.
The non-payroll items including backup, withholding and withholding for pensions,
annuities, IRAs, and gambling winnings are reported on Form 945, Annual Return of
Withheld Federal Income Tax. The return is due January 31 of the preceding year.
Report Federal Unemployment Tax on Form 940, Employer’s Annual Federal
Unemployment (FUTA) Tax Return or Form 940EZ, a simplified version of Form 940.
Important information: If on your application you indicated you have or will have employees, you will be
automatically enrolled in the Electronic Federal Tax Payment System (EFTPS). This is a free service
provided by the U.S. Department of the Treasury that lets you pay all your federal taxes online or by
phone. You will be receiving more information by mail, including a Personal Identification Number
(PIN) and instructions for obtaining an Internet Password so you can make payments online. NO
ACTION IS REQUIRED ON YOUR PART. Wait to receive your EFTPS materials in the mail.
2.
Excise Taxes
Definition:
Excise tax is a tax on the manufacture, sale, or consumption of a specific commodity.
Examples are fuel taxes, environmental taxes, and communications and air transportation
taxes.
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Parent category: Financial