Things You'll Need:
- Form 943, Employer's Annual Federal Tax Return for Agriculture Employees (For use by farm employers)
- W-4 for each employee
- Employer's Tax Guide Publication 15
- Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return
- Employer's Identification Numbe (EIN)
- Employer's Supplemental Tax Guide Publication 15A
- Form 941, Employer's Quarterly Federal Tax Return
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Step 1
Obtain an Employer's Identification Number (EIN). You must have an EIN to manage your paperwork and submit your deposits.
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Step 2
Use the employees' W-4 forms and Publications 15 and 15A from the Internal Revenue Service to calculate the proper amounts to withhold from employee wages. These deductions will make payments toward the employees' Federal Income taxes, their Social Security taxes and their Medicare Taxes.
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Step 3
Calculate your matching payments for the employees' Social Security and Medicare payments.
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Step 4
Make the payments for the employees' Federal Income tax deductions, their contributions to Social Security and Medicare, and your contributions to Social Security and Medicare on their behalf as one lump sum.
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Step 5
Report the income tax, Social Security and Medicare payments using Form 941, Employer's Quarterly Federal Tax Return for non-farm workers and Form 943, Employer's Annual Federal Tax Return for Agriculture Employees for farm workers.
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Step 6
Figure your contribution to the Federal Unemployment Tax (FUTA). Your employees do not make a contribution to this tax.
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Step 7
Send in your FUTA contribution using Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return. FUTA payments are reported and deposited separately from income tax, Social Security and Medicare payments.
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Step 8
Understand that the most complicated part of the process to manage is actually making your deposits. There are different requirements for making the deposits based upon how long you have been making them and how much they are.
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Step 9
Consult the IRS website to ascertain the exact dates when your Federal Tax Deposits (FTDs) will be due (see Resources below). The website will also instruct you about the method to make your deposits given the specifics of your deposit situation.
