Employment Taxes ? Depositing With The IRS

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 don'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 employee's paycheck, the IRS views an employer'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.

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

In The News:

Amazon federal taxes: how the company’s corporate tax bill was $0  Vox.comAmazon's founder is America's richest person, but the company paid no corporate income tax last year. How can that be? For starters, Jeff Bezos is rich because ...
Here's how to use insurance plans to save income taxes  Moneycontrol.comIf the policyholder surrenders the traditional plan before two years and the ULIP plan before five years the tax benefit will get reversed.
How High-Tax Countries Tax  BloombergThey don't tax wealth much, their income taxes are high but not very progressive, and they rely a lot on consumption taxes.
Get an actual human CPA to prep your taxes for just $79  CNETThat's an even bigger discount thanks to this Cheapskate-exclusive coupon. Normally, Visor's flat-rate tax-return preparation would cost you up to $198.
Bill Gates wants you to pay more tax if you are rich; here’s all he said about taxes on the wealthy  The Financial ExpressThe tech billionaire has been known to be an advocate of levying higher taxes on the wealthy. Bill Gates had also told Zakaria in 2018 that although he has paid ...
Tax clock: Calculate how many hours you spend working for your taxes  Fin24Just how many hours of your day do you spend working for government taxes?
Your parents, wife and children can help you save taxes. Here's how  Economic TimesSalaried individuals can save tax by paying rent to their parents and availing the HRA exemption benefit.
Pre and post-Budget 2019: How tax benefit changes for individuals with 2 home loans  Economic TimesThe interim Budget 2019 has proposed to treat the second house owned by an individual as self-occupied and thereby removed the necessity of paying tax on ...
I owe how much? Americans are shocked by the impact of Trump's tax law  CNBCThe first tax filing season under the new federal tax law is proving to be surprising, confusing — and occasionally frightening — for some Americans.
Fact-check: Does Amazon pay '$0' in taxes?  Times NowAmazon found itself in the headlines after suddenly pulling out of a planned New York City corporate expansion amid controversy over local tax incentives that ...
The new tax code offers extra perks for 529 savers. Your state may not  CNBCThe Tax Cuts and Jobs Act changed 529 accounts so they can be tapped not just for college costs but for K-12 private school tuition, as well. That means ...
Carbon taxes could create new winners and losers among countries, research says  Science DailyA global carbon tax would create new sets of economic winners and losers, with some countries holding a distinct competitive advantage over others, according ...
Christian tax preparer turns away lesbian couple on religious grounds  Washington PostFor four years, Bailey Brazzel says, she had employed the same tax preparer, Nancy Fivecoate of Carter Tax *Service* in Russiaville, Ind. Fivecoate prepared the ...
Budget 2019: What happens to your taxes now  Economic TimesYes, yes, those with net taxable income below Rs 5 lakh are the biggest gainers from Piyush Goyal's budget. But what about the others, I.e., those earning more ...
The curious case of missing wealth taxes in Singapore  TODAYonlineIt should come as no surprise to anyone that the Budget Statement of 2019 did not introduce any new taxes on wealth in Singapore nor raise the rates of the few ...
This is how fuel taxes increased since 2008 - with an extra 29c coming this year  Business Insider South AfricaGovernment levies now represent almost 41% of the petrol price.
Tolls, taxes and teachers’ pensions: Seven takeaways from Gov. Ned Lamont’s budget  Hartford CourantHere are some of the key takeaway's from Gov. Ned Lamont's budget, which is likely to undergo significant changes before the General Assembly votes on it.
Budget 2019: Only those with income up to Rs 5 lakh to pay no tax, rates remain same for all others  Economic TimesUnion Finance Minister Piyush Goyal in his interim budget 2019 has proposed that individuals with taxable income up to Rs 5 lakh will get full tax rebate under ...
Budget 2019: No marginal relief for taxpayers whose taxable income exceeds Rs 5 lakh  Economic TimesAlthough the interim budget 2019 has made income up to Rs 5 lakh tax free, the marginal increase in income above Rs 5 lakh will result in more tax outgo than ...
Colorado Springs marijuana business owners fail to pay $3 million in taxes  KKTV 11 NewsA marijuana business in Colorado Springs may be going up in smoke after the owners reportedly failed to pay the IRS about $3.1 million in taxes.
Democrats Want to Tax the Wealthy. Many Voters Agree.  The New York TimesA proposal to tax wealth finds support across party lines, along with the premise that the government should combat inequality.
Top banks under taxman’s lens over service tax issue  Economic TimesAt the heart of the matter is the lack of clarity on the tax liability on the annual fees that banks pay multinationals.
No increases in income tax rates or VAT; sin taxes and fuel levies to rise  Fin24There will be no increases in income tax rates and the VAT rate will remain unchanged, as government seeks to limit the negative effect of tax hikes on SA's ...
Tax Raid Continue At Road Contractor's Properties In Bhopal  NDTV NewsThe Income Tax department on Wednesday continued raids for the second day at four locations, including house and office of a road contractor Nilay Jain in ...
Do your taxes for cheap! H&R Block Tax Software Deluxe is on sale for just $18  PCWorldThe tax deadline is still a few months away, but this deal for H&R Block Tax Software Deluxe can't be missed.
Tax the rich, but bring in only progressive reforms: Bill Gates  Moneycontrol.comCongresswoman Alexandria Ocasio-Cortez has supported the idea of taxing income over $10 million at 70 percent, which is currently 37 percent.
Wall Street, Seeking Big Tax Breaks, Sets Sights on Distressed Main Streets  The New York TimesHedge funds and other wealthy investors are plowing money into so-called opportunity zone funds, a creation of the 2017 tax law that provides incentives for ...
Importers, Tax dept approach Supreme Court over GST “self-assessment'  Economic TimesIf an importer has paid higher tax can he get a refund after finding his own mistake? About 25 importers are fighting the tax department in the Supreme Court ...
Tony Evers vetoes the GOP tax cut bill but plans to include his own cut in the state budget  Milwaukee Journal SentinelGov. Tony Evers used his first veto Wednesday to reject a Republican plan to cut income taxes for middle-class families by using leftover money.
How 401(k) Plans Work: Tax Rules, Investments & More  Yahoo FinanceAs of 2018, around 55 million American workers were active 401(k) participants and assets in 401(k) plans totaled $5.60 trillion. Still, many people are in the ...
Amazon's new Virginia data center is getting a bunch of tax breaks, and it gives insight into how the company reduces its tax liability  Business InsiderVirginia offers tax breaks to the biggest data-center operators. And it designated land Amazon was interested in as an "opportunity zone."
The 8 Most Common 2019 Tax Return Questions, Answered by Experts  The New York TimesThe most important changes to the tax code in decades have taken effect — and filers are confused. We asked CPAs and other tax-prep pros to simplify things.
Key House Democrats request answers from IRS over new tax forms  CNNAs tax season kicks into high gear, two House Democrats have questions for the Internal Revenue *Service* about a newly redesigned tax form in the wake of a ...
Tax on sugary drinks tops Lamont's list of new 'sin taxes'  The CT MirrorGov. Ned Lamont's first budget will include a series of new “sin tax” proposals, including levies on sugary drinks, electronic cigarettes and plastic bags, and ...
Homebuyers’ wait for GST relief continues! Council defers decision on tax on under construction houses  The Financial ExpressThe GST Council on Wednesday deferred the decision to consider a reduction in tax on under-construction houses to Sunday.
In Pakistan, people are rewarded for paying tax  Samaa DigitalPakistan rewarded its highest taxpayers in a ceremony on Wednesday. The tax awards were given to 100 people by Prime Minister Imran Khan in Islamabad.
Reporter's Take | Angels get a tax breather  Moneycontrol.comAlso, a company earning anything up to Rs 100 will be considered a start-up instead of the earlier limit of Rs 25 crore.
Ohio Gov. Mike DeWine: Raise gas taxes by 18 cents per gallon  Cincinnati.comOhio Gov. Mike DeWine is proposing an 18-cent per-gallon gas tax increase.
Taxes 2019: When to file and what big changes to expect  USA TODAYTax filers need to realize, though, that it won't be business as usual when it comes to filing their 2018 tax returns.
The new tax law has a bunch of changes. Here's what you need to know as filing season begins  CNBCIt's time to sharpen your pencils and work on that 2018 income tax return. Just make sure you understand the new tax law first. After one year under the Tax Cuts ...
Smoke shop owners bristle at proposed Oregon tobacco tax increase  KATUEUGENE, Ore. - A pack of cigarettes in Oregon costs about $5 or $6. That's cheaper than Washington and California because the taxes on cigarettes in Oregon ...
Elizabeth Warren’s wealth tax explained  Vox.comA 2 percent levy on assets more than $50 million, and higher rates on billionaires.
Thanks To Trump Tax Law, The Time Is Ripe For This Roth Conversion Retirement Trick  ForbesBetween Trump's temporary tax cuts and the stock markets downswings, now could be the time to do a Roth conversion.
Lawmakers consider fixes for costly tax miscalculation  krcgtv.comHigh-ranking state lawmakers on Wednesday said they're still trying to figure out how much the average taxpayer will pay due to a mistake at the Department of ...
These three tax breaks for 2018 are still up in the air  CNBCWhether you own a home or you're shelling out for higher-education costs, Congress has yet to approve a package of breaks known as tax extenders.
New Zealand To Target Internet Giants With Digital Tax  NDTVNew Zealand said on Monday that it plans to update its laws so it can tax revenue earned by multinational digital firms such as Google, Facebook and Amazon, ...
No tax liability if your income is up to Rs 9.5 lakh, but conditions apply  Business StandardStressing that tax concessions have been provided with a view to help poor and middle-class people living on a tight budget, Finance Minister Piyush Goyal on ...
Harshad Mehta scam: Family free of over Rs 2,000cr income tax demand after 27 years  Moneycontrol.comThe tax refunds following favourable court orders would eventually pave the way for the custodian to release the assets of the Mehtas.
A Christian Woman Refused To Do A Lesbian Couple's Taxes Because They Are Married  BuzzFeed News"We just sat there shocked for a minute and then we got up and walked out," one of the women told BuzzFeed News.
The tax code treats all 1 percenters the same. It wasn’t always this way.  The Washington PostWhen we debate income tax policy in the United States, we typically focus on what's in the chart above, which shows the top marginal tax rate from 1913 to the ...
Filing Taxes on Your Phone? Insert Frustrated-Face Emoji Here  The New York TimesMillions of people are expected to submit their returns via mobile platforms this year. I won't be one of them.
How to tax the rich  The EconomistDURING HIS lesser-known run for president, which began in 1999, Donald Trump proposed levying a wealth tax on Americans with more than $10m. He may ...
Karnataka businessman jailed for income tax default of Rs 7.35 crore  The News MinuteA Karnataka-based businessman has been jailed for six months for allegedly not filing his income tax arrears and interest of around Rs 7.35 crore despite ...
How Much Do You Have to Make to File Taxes in 2019?  TheStreetYour income, filing status and age all play a role in whether you have to file a tax return and what your requirements are. Here's what you need to know.
How reachable is zero-tax income level of Rs 5 lakh using deductions, exemptions?  Economic TimesAnjali Behl has not been able to hide her excitement since the Budget was announced on 1 February. “My net income after all deductions will be below Rs 5 ...
My tax return 2019: Claim these tax deductions – even if you can't itemize your federal tax return  CBS NewsAlso known as "above the line deductions," these special provisions can be big money-savers.
Linking Aadhaar-PAN is mandatory for tax filers; to be completed by March 31: CBDT  Economic TimesNEW DELHI: The CBDT has stressed that Aadhaar-PAN linking is "mandatory" for those filing an Income Tax Return (ITR) and this procedure has to be ...
The impact & significance of tax changes  Economic TimesThe only sector that saw substantive changes in the Finance Bill was real estate.
California lawmakers propose soda tax, outlawing super-size sugary drinks  Los Angeles TimesCalifornia restaurants and stores would be prohibited from selling “Big Gulp”-style sodas and consumers would face taxes on sugar-sweetened soft drinks under ...
Angels & demon: Decoding the tax row that's making startups nervous  Economic TimesThe sector is now smarting under tax scrutiny which it says is unnecessary and harmful.
Wealth tax calculator: Try your hand at taxing the super rich  Vox.comSen. Elizabeth Warren (D-MA) recently proposed a wealth tax on the very rich as a way to curb wealth inequality. It's a simple 2 percent tax on fortunes over $50 ...
Tax case: McKinsey has KPO in India not BPO, says Supreme Court  Economic TimesIn a setback to the global white shoe consulting firm the Supreme Court rejected a special leave petition (SLP) filed by McKinsey Knowledge Centre against a ...
Cabinet approves abolition of Ombudsman for direct, indirect taxes  Economic TimesThe approval comes against the backdrop of people preferring online grievance redressal mechanism.
Most Americans Support Increasing Taxes on the Wealthy: Poll  FortuneSupport for raising taxes is widespread, according to a new poll, which found that 76% of registered voters want the wealthiest Americans to pay more.
Tax ombudsmen abolished: Experts raise concern  LivemintIn the absence of the tax ombudsmen, taxpayers should be alert to the structure of the available alternative grievance systems and their limitationsGovt said the ...
Frequent large cash deposits, withdrawals can lead to tax scrutiny  Business StandardFrequent deposits and withdrawals of large amounts can lead to an income-tax (I-T) notice during assessment of return. Recently, when a tax official scrutinised ...
How your employer can help you reach zero-tax Rs 5 lakh income  Economic TimesAs a salaried taxpayer, you are eligible for various tax benefits that can bring down your taxable income. Here is a look at six such benefits.
UBS Ordered to Pay Record $5.1 Billion in French Tax Fraud Trial  BloombergQuintUBS Group AG was ordered to pay more than 4.5 billion euros ($5.1 billion) by a Paris court that found the bank guilty of helping wealthy French clients stash ...
Delay to tax havens’ public registers ‘risks national security’  The GuardianThe UK government is undermining national security by delaying the introduction of publicly available share ownership registers in Britain's major tax havens ...
Richest in U.S. Have a Few Tricks to Avoid Democrats' Tax Plans  BloombergIf Democrats want the wealthy to pay more into the U.S. Treasury, they'll need to contend with one fact: the rich are very good at dodging taxes.
Drivers react to governor's gas tax increase idea  13abc Action NewsTOLEDO - (WTVG) - It's no secret roads all over Ohio are a mess. The $.28 gas tax we pay now isn't enough to fix all the roads. So the governor could hike the ...
To get Trump’s tax returns, Democrats just need to send a letter  The Washington PostThe law that permits the Ways and Means committee to receive the president's returns is simple and clear.
Your employer can help you reach zero-tax income level of Rs 5 lakh: Here's how  Economic TimesHere are six benefits that can help the salaried bring down the taxable component of income from the employer.
Marco Rubio’s plan to fix the GOP tax cuts starts with stock buybacks  Vox.comRepublicans said the tax cuts would lead to a big boost in business investment. It hasn't, and Rubio wants to fix that.
MSPs approve Scottish government income tax plans  BBC NewsMSPs have voted to approve the Scottish government's income tax plans for the coming year. Finance Secretary Derek Mackay chose not to pass on a tax cut ...
Tax reforms, not coercion, will boost revenues  LivemintFirst four years of UPA-I saw faster growth in direct tax-to-GDP ratio than the first four years of the Modi regime, despite the absence of comparable aggressive ...
Want to reduce your taxable income to Rs 5 lakh? Here's a list of all deductions you can claim  Economic TimesInterim Budget 2019 has proposed rebate under Section 87A on full income tax liability for all those earning up to Rs 5 lakh taxable income for FY2019-20.
After 27 years, Harshad Mehta and family free of tax cloud  Economic TimesMUMBAI: After 27 years of tortuous battle, involving claims, counter-claims, and cross-appeals, the income tax tribunal has scrapped almost the entire tax ...
Did you believe these myths on tax deductions?  Economic TimesSchemes like health insurance, term plans, ULIPs allows tax payers to claim deductions.
Tax Department Seeks To ‘Examine’ Tribunal Orders Against It  BloombergQuintA recent office memorandum issued by the Central Board of Direct Taxes has perturbed tax practitioners across the country. The CBDT has set up a committee of ...
Centre eases tax rules for startups  Times of IndiaCompanies News: NEW DELHI: Large listed companies and alternate investment funds can now invest any amount in start-ups without worrying about tax ...
Netflix 'didn't pay a dime in state OR federal income taxes last year and even got a $22m REBATE'  Daily MailThe Institute on Taxation and Economic Policy said corporations like Netflix are still 'exploiting loopholes' under the Tax Cuts and Jobs Act. The streaming giant's ...
TurboTax to Add New Section for Calculating Crypto Taxes  CointelegraphU.S. tax preparation software TurboTax Online has partnered with a crypto startup to add a crypto taxation section to its services.
Alexandria Ocasio-Cortez’s Tax Hike Idea Is Not About Soaking the Rich  The New York TimesAlexandria Ocasio-Cortez has kick-started a much-needed debate about taxes. But the debate, so far, has been misplaced. It's obvious that the affluent ...
Tax queries: Gifts received from a relative are tax-exempt  Economic Times"According to Section 56(2)(vii) of the Income-Tax Act, gifts received from relatives are not taxable. The specified list of relatives includes grandparents and ...
Kamala Harris leaps to unwarranted conclusions in tax tweet  The Washington PostThe Democratic senator and presidential candidate says a decline in the size of tax refunds shows the Trump tax plan is a middle-class tax hike. The data shows ...
Man Arrested For Rs 12 Crore Tax Default From Mumbai Airport  NDTV NewsThe Income Tax Department has invoked a rarely used power and arrested a Karnataka-based businessman for alleged tax default of about Rs 12 crore, ...
Less cash in house tax kitty to hit civic projects  Times of IndiaLUCKNOW: Poor house tax collection by Lucknow Municipal Corporation in 2018-19 financial year will impact development works, specially road and drain .
Warren’s ‘wealth tax’ to face host of challenges  Fox BusinessThe proposal has public support, but faces significant implementation hurdles.
Bernie Sanders estate tax increase: For the 99.8 Percent Act, explained  Vox.comBernie Sanders, the Vermont senator and not-quite-yet 2020 presidential candidate, is unveiling a proposal to dramatically expand the estate tax, which has ...
Suspicious income tax refund claims under I-T Dept scanner  Moneycontrol.comMinister of State for Finance Shiv Pratap Shukla in a written reply to a question in Rajya Sabha said there has been an increase in detection of suspicious refund ...
Ottawa should change tax rules to encourage donations to charity  Toronto StarGovernments ought to do all they can to encourage giving, and there's one measure the Trudeau government should adopt in its upcoming budget that would ...
How Can We Tax Footloose Multinationals? | by Joseph E. Stiglitz  Project SyndicateApple, Google, Starbucks, and companies like them all claim to be socially responsible, but the first element of social responsibility should be paying your fair ...

Alas! In E-Commerce Taxland

In trying to comply with tax laws for your e-business,... Read More

Where to Find Tax Breaks for Your Home Based Business

April 15th looms in front of most people every year... Read More

Reducing Taxes Through Dividend-Salary Mix Calculations

Should I take wages or dividends from my privately owned... Read More

About Income Taxes; Tidbits

1812The first attempt to impose an income tax on America... Read More

Are You Overpaying Taxes If You Use Tax Preparation Software?

For many business owners the answer to this quandary is... Read More

Small Businesses: Company Car Vs. Personal Mileage Reimbursement In Hurricane Katrinas Wake

With gas prices at an all time high before Hurricane... Read More

IRS Lock-In Letters ? What?s An Employer To Do?

Employers often ask employees to designate the amount of tax... Read More

Truly Bizarre Taxes: The Tax on Illegal Drugs

One can never underestimate the enthusiasm that politicians have for... Read More

10 Tax Tips to Reduce Costs and Increase Income

No one likes paying tax. Everyone understands that tax is... Read More

Marriage or Divorce ? Check Your Social Security Number

Newlyweds and the recently divorced should make sure that names... Read More

Business Tax Deductions

As we enter mid-March, taxpayers begin to become very interested... Read More

Tax Reform, My Way

We need real tax reform and we need it now.... Read More

The Seven Deadly Tax Sins: Commonly Missed Deductions

It's that time again, the April 15 tax deadline is... Read More

Tax Secrets - How Drew Miles Helped Me

How about a Tax Tip?As we all know Taxes are... Read More

Small Business Tax Credit - Americans with Disabilities Act

Many small businesses complain when confronted with the expense of... Read More

Slash Tax when Buying a Business

When buying a business, how the "purchase price" is made... Read More

Tax Trap #1 -- Waiting to Incorporate: What A Difference A Date Can Make

NOTE: This is the first in a series of 5... Read More

How to Check the Status of Your Tax Refund Online

So, you were pleasantly surprised to learn that you are... Read More

Gambling Income and Expenses - Tax Requirements

Hit a big one? With more and more gambling establishments,... Read More

Insider Guides to IRS Audits!

Ever wish that, as a business owner, you knew exactly... Read More

How Likely Are You To Be Audited?

Statistics for IndividualsUnfortunately, the IRS increased its rate of auditing... Read More

State Tax Information

All states also have their own tax system. Typically there... Read More

Tax Trap #2 -- Double Taxation: Isnt Once Enough?

Have you been thinking about incorporating your small business or... Read More

What You Need To Know About Taxes If You?re Getting Married

It may not be high on the list of wedding... Read More

Taxation of Isle of Man Companies from April 2006

At the present time a company incorporated in the Isle... Read More