Tax Liability Payments and Tax Report: FICA & Federal Income Taxes
FICA and Federal Income Taxes:
The withheld Social Security and Medicare taxes of employees as well as the employer and employees’ Federal Income Taxes are added together. The business makes a one-time payment for the above said tax value. The amount has to be paid at any authorized financial institution or at the Federal Reserve Bank. If the business wants to pay the amount monthly, it is permissible. A 15-day due date is allowed for small businesses, but larger businesses have to make the payment every two weeks.
Small businesses prepare and submit Form 8109 with the check. This form, known as the Federal Tax Deposit Coupon and shown in the image below, identifies the type of tax and the tax period.
Today, the Electronic Federal Tax Payment System is used by small and large businesses alike.