Federal taxes withheld from employees' pay, the employer's share of FICA, and the employer's FUTA payment must be timely deposited, by cash, check or electronically with an authorized federal depositary institution. Income and FICA taxes are deposited on a monthly or semiweekly schedule, depending on a look-back rule. Accumulated income and FICA taxes of $100,000 or more are deposited the next banking day.
Mandatory electronic deposits are required for employers whose accumulated federal taxes exceed certain monetary thresholds. FUTA taxes are deposited quarterly on a per-employee wage base of $7,000. Due to these timing considerations, taxes are deposited long before any tax returns are filed. Employers file quarterly tax returns, Form 941, to reconcile the income and FICA taxes withheld from employees' pay. FUTA taxes are reconciled annually on Form 940.
Two deposit schedules — monthly or semiweekly — ap...(register to read more)