Collection of Employment Taxes – Info for Employers (Part I):
What are employment taxes?
Employment taxes are the amount you must withhold from your employees for their income tax and Social Security/Medicare tax (trust fund taxes) plus the amount of Social Security/Medicare tax you pay for each employee. Federal unemployment taxes are also considered employment taxes.
Employment taxes are incurred at the time you pay wages and generally paid in semi-weekly or monthly deposits. You must use electronic funds transfer to make all federal tax deposits, generally through the Electronic Federal Tax Payment System (EFTPS). See Publication 966, Electronic Federal Tax Payment System: A Guide To Getting Started.
Next week: What the IRS will do if you do not pay your employment taxes.
(IRS Publication 594 and IRS.gov) (TTT 10/22/19)