How are withheld payroll taxes deposited?
The two methods of depositing employment taxes are electronic and through the use of a coupon. Electronic: The preferred method, and the one required of some employers is to make employment tax deposits electronically through the Electronic Federal Tax Payment System (EFTPS). EFTPS can be used for all tax types, including excise and corporate income taxes. In order to make employment tax deposits using EFTPS, a company must first enroll and receive and activate an EFTPS pin number. This process is quite simple and information about these procedures is made available to all new companies that register for an Employer Identification Number (EIN) with the IRS. Coupon: If you do not make payments via EFTPS, use Form 8109, Federal Tax Deposit Coupon, to make the deposits at an authorized financial institution.
