How to Pay Payroll Tax
One of the responsibilities of a small, mid-size or large business is paying payroll taxes. Thus, knowing how to pay payroll taxes is an important part of a business in order to comply with federal as well as state guidelines. There are different methods you can use to pay this tax and that decision is up to you.
Materials:
- Withholding taxes
- Form 941
- Form 1040-ES
Individual
- Review your previous year tax return to determine how you filed your tax payment then. If you use the e-filed system, file your estimated payments again using the electronic system. The first filing date is January 15 to April 15 and the next one is June 15 to September 15. Use a credit, debit card, checking or savings account to make your payment. Consider enrolling in the Electronic Federal Tax Payment System at the eftps.gov website.
- Send your payment by mail and submit the 1040-ES voucher along with your payment. Write the check or money order to the United States Treasury and seal the envelope.
- Determine your annual estimated tax liability by taking your income and subtracting any credits as well as deductions. Use your prior year amounts to come with an estimate of how much you owe on taxes.
Employer
- File form 941 and pay your quarterly payroll taxes either by mail or electronically. Consider using the Electronic Federal Tax payment System by registering at eftps.gov. Using this system makes it easier to submit your payment and information.
- Determine if you should pay quarterly or monthly. If your tax withholding is less than $2500 you will have to pay quarterly. If over $2500, pay using Federal Tax Deposit Coupon with form 8109. Look for a bank that takes tax deposits and open a bank account and pay the taxes.
- Pay your payroll taxes using the mail if you have minimal withholdings. Send your check or money order along with a completed form 941.
- Research to find the guidelines to submit state taxes. Each state has different guidelines so call or visit your state website to obtain their policy.