How to Pay Employer Federal Taxes
If you are running a business and you have employees that you are paying, then you are required to pay federal employer taxes each tax year that you are in business. With employer federal taxes, you are required to make quarterly payments using the quarterly federal tax return. You do have to make a payment with your filing each quarter. In fact, you pay your employer federal taxes with a voucher that is included as part of the quarterly form.
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Things You'll Need
- Employer identification number (EIN)
- IRS form 941
- IRS form 941-V
- Calculator
- Pen
- Employee wages details
Instructions
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1
Get IRS Form 941. You can get IRS Form 941 from the IRS website. See the Resources section for a link. This form is used for quarterly employer federal taxes. You will file this same form each quarter.
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2
Input business details and quarter. At the top of Form 941, you will select the quarter you are reporting and fill out the details of your business. You will need to enter your name, the business name, business mailing address and your employer identification number (EIN). If you do not have an EIN, you can get one from the IRS by applying on its website.
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3
Enter employee wages details. Part 1 of Form 941 is where you input details of wages paid to your employees. You will only enter information for the current quarter that you are filing.
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4
Enter your deposit schedule and tax liability. Part 2 of Form 941 is where you give the IRS information on your deposit schedule and tax liability. If you reported $50,000 or less in taxes in the previous year, then you are a monthly depositor. However, if you reported more than $50,000 in taxes, then you are a semi-weekly depositor.
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Finish the form. Part 3 of Form 941 only needs to be filled out if your business closed or if you are a seasonal employer. Part 4 of Form 941 is where you can elect to let the IRS communicate with the third-party that filled out the form if it was not you. Part 5 of Form 941 is where you sign and date the form.
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Pay your taxes. You will use Form 941-V, which is a payment voucher attached to Form 941, to pay your employer federal taxes. This is to be mailed with your completed Form 941 and the payment. However, if your payment is more than $2,500, you have to make the payment with a bank that accepts federal tax deposits. To set this up, you can call (800) 555-4477.
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