As an employer, you not alone have to report the taxable income of your business, but there are a number of other federal taxes you need to pay that refer to your employees. This includes federal income tax withholding, Social Security, Medicare and unemployment taxes. Each type of tax has specific payment deadlines and forms you need to send to the IRS.
Step 1: Complete an IRS Form 941, Employer’s Quarterly Income Tax Return, or annually Form 943 for Agriculture Employees
The main purpose of the form is to report the wages you pay, the tips your employees earn and to calculate the total of federal income tax, Social Security tax and Medicare taxes you should have withheld and owe to the IRS. You can besides account for early types of payments, such as any COBRA health insurance sequel aid you provide .
You must file a separate Form 941 each quarter. The returns are ascribable by the last day of the calendar month following the end of each quarter, which falls on April 30, July 31, October 31 and January 31 each year .
Step 2: Calculate your Federal Unemployment Tax (FUTA) on Form 940
If you are an employer and pay wages of $ 1,500 or more in any calendar quarter of the previous class, or if you had one or more employees who worked at least 20 or more different weeks, then you have a duty to pay FUTA. If so, report the amount of tax you owe for the class on Form 940 by January 31.
however, you must determine the come of tax you owe each one-fourth and make a payment when the accumulative amount for the class reaches $ 500. If after one quarter you owe less than $ 500, carry it forth and evaluate the sum again after the adjacent quarter .
Step 3: Sign up for the Electronic Federal Tax Payment System (EFTPS)
The federal politics requires all employers to deposit taxes using this system and doesn ’ deoxythymidine monophosphate allow you to mail in checks. If you haven ’ thymine been mechanically enrolled by the IRS, you can create an account in EFTPS by visiting eftps.gov and click on “ Enrollment. ” On the adjacent page you should click the box marked “ Business. ”
Have your employer identification number available and the clientele trust history and routing numbers you want to make your payments from. Be certain to enroll at least two weeks prior to the payment deadline, as it takes that long to receive your PIN.
Step 4: Make your tax payments
You can pay the employee income, Medicare, Social Security and unemployment taxes you calculate on Forms 940, 941, and 943 at eftps.gov. At the bottom of the page, pawl on “ Make a Payment ” and enter your EIN, PIN and Internet password. Your bank will debit the measure you request from your account and send requital to the IRS .
When you finish making the requital, you will receive a track number that you should retain for your records. Be indisputable to make your EFTPS payment by 8 post meridiem EST the day before payment is due to ensure you receive accredit for a timely down payment .
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