This information is contained in IRS Circular E . In certain cases, these deposits must be made by electronic funds transfer. Deposits, other than the electronic funds transfers, are made at authorized commercial banks or to the Federal Reserve Bank in the employer s geographic area. Send one check covering both Social Security and Medicare and federal withholding taxes, payable to the bank where the affiliate s deposits are made. The 941 is used to reconcile tax deposits made throughout the quarter and to pay any undeposited taxes due.
Unemployment is a tax paid entirely by the employer rather than withheld from the employees wages.
See IRS Circular E for rates. An annual return is due on or before January 31, following the calendar year to which it relates. Basically, the return reconciles federal unemployment tax deposits with total wages subject to tax. Most states impose income taxes and withholding requirements similar to those of the federal government. Affiliates unfamiliar with the requirements of their state should contact the state Department of Revenue or the Department of Taxation.