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Home::Taxes

Employment Taxes – Depositing With The IRS

Author : Richard A. Chapo
If your business has employees, you must pay employment taxes. The payment system can be a bit confusing, so this article discusses how to go about depositing employment taxes with the IRS.



Depositing Employment Taxes



To pay employment taxes, you must deposit the money with the IRS. As is typical with tax situations, the payments are not actually made to the IRS. Instead, you must deposit the employment taxes with a federal depository. Moving the burden to the private sector, the IRS requires most banks to act as depositories. If your business has just started hiring employees, ask you bank if they act as a depository. If they do not, you may want to change banks.



To deposit the taxes, you forward money per the bank specifications. You will also need to file a Federal Tax Deposit Coupon, Form 8109, with the deposit. The IRS typically sends these forms to you at the beginning of each calendar year. If you donÂ’t receive any, you can download the form from the IRS site or ask your tax professional.



When To Deposit



You must deposit employment taxes either once or twice a month. The IRS will send you a schedule at the end of each year for the subsequent year. As a general rule, you want to file within a few days of each pay period.



Failure To Deposit



Collecting employment taxes is a high priority of the IRS. Since the taxes include money deducted from an employeeÂ’s paycheck, the IRS views an employerÂ’s non-payment as a form of theft. If you fail to pay, you can expect the IRS to come down hard on your business and, potentially, shut it down. In short, make absolutely sure you deposit the employment taxes.



In Closing



There is no other way to put it – paying employment taxes is a pain. Just make sure you pay them to avoid the wrath of the IRS.


Article Source: http://www.articledashboard.com





Richard Chapo is with www.businesstaxrecovery.com - recovering overpaid taxes for small businesses. Visit our article page - www.businesstaxrecovery.com/articles - to read more tax articles.





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