How to File Federal Withholding Income Tax Online
Filing withholding taxes for your business does not have to be a difficult task. It is a detailed one that will require paying attention to what you are doing and when. Apart from that, it is actually easy. Failure to do so in a timely manner, however, will result in fines, late fees and a closer examination in an audit.
Other People Are Reading
Things You'll Need
- Checking account number and routing number
- Business EIN and other identifying numbers
- EFTPS Internet password
- PIN for filing onli
- Quarterly IRS 941 forms
Instructions
-
-
1
Register online at the IRS site www.eftps.com and wait for acceptance. The IRS provides a method to file withholding taxes online through the Electronic Federal Tax Payer System, or EFTPS. You may use this site to either file or both file and pay online.
-
2
Gather the needed documents together including the EIN, the Social Security numbers and checking account information. The registration usually takes a few business days to be activated. Once approved, you will be provided with an Internet password and a personal identification number to use to file and pay online. Write or print this information and keep it on hand to use when it comes time to file.
-
-
3
Calculate the amounts of withholding. The withholding, Social Security and Medicare are all filed and paid together on EFTPS. Quarterly IRS form 940 includes a breakdown of these expenses.
The alternative is to calculate withholding yourself through the use of frequently changing withholding tables, W-4 forms and more. This is highly discouraged simply because of the amount of time involved in calculating these numbers based on different changes every week.
-
4
File the deposits on taxes due. The EFTPS system's opening screen requests your EIN, your Internet password and your personal identification numbers. The next screen takes you to the option of which taxes you will be filing; in this case it will be a Form 941-- "Deposit on Balance Due."
-
5
File the taxes quarterly. As soon as the prior quarter ends, print and sign the Form 940 which should contain all the amounts previously paid through the deposits. If there is more owed, enclose a check with a signed copy of the Form 940. If not, just make sure the form is filed on time to avoid a fine.
-
1
Tips & Warnings
It is recommended that you make deposits each payroll period to avoid a lump-sum payment that may be difficult to pay.
