How Do I Submit Payroll Taxes to the IRS?

Making Federal Payroll Tax Deposits

Beginning January 1, 2011, the IRS is requiring that all payroll tax deposits be made electronically, using the Employer Federal Tax Payment System (EFTPS).

This article describes two ways to make federal payroll tax deposits, but the tax deposit coupon cannot be used for deposits after December 31, 2010.

What are payroll taxes?

First, let's define what is meant by "payroll taxes." They are the taxes you must pay on your payroll:

• Those federal income taxes you withheld from your employees' paychecks,
  
• The Social Security/Medicare taxes you withheld from employees and the matching amount you set aside from that payroll, and
  
• Federal unemployment taxes, based on your total gross payroll.

Here are the two ways to pay these taxes:

Using the EFTPS Online System
Go to the EFTPS website . You register and then use the website to pay your taxes; the amounts are deducted from your business bank account.

When to Pay
Payment deposit requirements are based on the size of your payroll tax liability (the amount you must deposit for payroll taxes each year). Read about when to make payroll tax deposits or check the IRS small business tax calendar or ask your tax adviser to check the payment due dates.

Back to All About Payroll Taxes