These forms are to be turned into and retained by employers. Employers are to withhold Federal and State taxes from wages paid to employees. In determining amounts to be withheld, other acceptable methods may be used. Use of these alternative methods require some tax accounting familiarity.
Professional assistance is recommended.
All 1996 wages are subject to medicare tax. In addition to withholding social security and medicare from each employee, the employer must also contribute an identical amount for each employee. Deposits of funds withheld for Federal income tax, FICA and FUTA must be accompanied by this form. FUTA and FICA deposits are made to the Federal Reserve Bank serving the employer's area or with an IRS authorized financial institution. The amount of accumulated undeposited FICA taxes determines how often deposits must be made.