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snowkitty
Dec 16, 2007, 12:49 AM
Hi,

My employer withheld my social security, medicare, federal income, and state income tax (we are in Colorado).
However, he is a new to this ( I am his first employee), and he doesn't know where to deposit those taxes to. And what forms should he file after he deposit those taxes to IRS and the State so the tax will be credited to my account?

Thanks.
:)

AtlantaTaxExpert
Dec 16, 2007, 11:10 AM
He needs to go to the local IRS office and get a special deposit coupon to use to deposit the money at ANY bank that is part of the Federal Reserve Bank System. The IRS will then mail him the rest of the coupons he will need (these coupons will have his specific Employer Identification Number pre-printed on them) to make the monthly deposits at the same bank.

Quarterly, he must file Form 941 to reconcile the deposits and to identify the taxes are credited to YOUR SSN.

A similar process is required for the state taxes.

Further, he must file an annual Unemployment Tax Return with BOTH the IRS and the state.

It would probably be best if he hired a competent tax professional to help him with this process, especially if he plans to hire more employees in the future.

MukatA
Dec 17, 2007, 12:52 AM
You file Form 941 and use payment voucher 941-V to pay social security tax, medicare and federal income tax. Then you must file yearly return, and file return for FUTA tax and pay the tax.

There may be some state taxes besides state income tax. For example, CA has Unemployment Insurance (UI), Employment tax (ETT) and State Disability Disability (SDI). Then you must file annual returns.
So as AtlantaTaxExpert suggested that it is better that you get some professional help to avoid mistakes and penalties. You also need help to issue W2 and file it.

AtlantaTaxExpert
Dec 18, 2007, 08:09 PM
Agreed! Go hire a tax professional to help with this process.