Two Ways to Pay Your Federal Payroll Taxes
As with most things these days, there are two ways to do anything: the "old fashioned" send-it-by-mail way, and the new online way. This principle is also the same for paying your payroll taxes.
First, let's define what is meant by "payroll taxes." They are the taxes you must pay on your payroll:
- Those taxes you withheld from your employees,
- 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.
- Using Tax Deposit Coupons
To pay using the tax deposit coupon (Form 8109-B), fill out the appropriate boxes designating which tax you're paying and the amount being deposited. Then take the coupon to your local bank (not a credit union) to make the deposit. The bank sends this deposit on to the appropriate federal agency.
- 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.
Either way you pay, be sure you know WHEN to pay. Check the IRS small business tax calendar or ask your tax adviser to check the payment due dates.
