Skip to main content
Back to Category

Federal tax deposit


Withholding taxes from employee wages while filing tax returns is a key function of any payroll service. Sending those withholdings to the Internal Revenue Service is a federal tax deposit.  As spelled out in the Federal Insurance Contributions Act (FICA), that amount includes Social Security, Medicare, federal income, and unemployment taxes. Your federal tax deposit obligation, also known as a total payroll tax liability, is the minimum amount your employees are required to pay in federal payroll taxes as reported on IRS Form 941.

Businesses submitting federal tax deposits use IRS Form 8109, also known as a Federal Tax Deposit Coupon. In the past this could be done at a bank or financial institution, but the IRS now strongly encourages businesses to submit deposits electronically via the Electronic Federal Tax Payment System.  Your federal tax deposit schedule is determined by the amount of your tax payment. Payments are generally due either annually, quarterly, monthly, or semi-weekly.  Deposit due dates differ for a small business compared to a large corporation, with smaller businesses paying on a less frequent basis.

Ascentis' powerful HR software can help you with all of your tax compliance needs.


Looking for HR tools and resources?

Streamline your processes with Ascentis

Learn More

Other terms:

Deferred compensation


A deferred compensation plan sets aside a portion of an empl... See more

Employee Handbook


What Is an Employee Handbook? An employee handbook is a com... See more

Paid time off (PTO)


Paid time off (PTO) is one of the most important building bl... See more

Sign up for a free demo today