Federal Tax Deposits (FTDs) for Form 941 are made up of withholding taxes or trust funds (income tax and Federal Insurance Contributions Act (FICA) taxes, which are Social Security and Medicare held in trust), that are actually part of your employee's wages, along with the employer's matching half of FICA. FTDs for Form 940 are taxes paid by the employer to provide for unemployment compensation to workers who have lost their jobs. Only the employer pays FUTA tax; it is not deducted from the employee's wages. These taxes need to be paid as they become due in order to avoid penalties. If you have a deposit requirement, you may be able to choose one of two deposit methods: Electronic Federal Tax Payment System (EFTPS) or using the FTD coupons (Form 8109) if you are not using, or required to use, the Electronic Federal Tax Payment System.
Secure Way to Pay All Your Federal Taxes
EFTPS is a tax payment system provided free by the U.S. Department of Treasury. Pay federal taxes electronically - on-line or by phone 24/7.
Businesses and Individuals can pay all their federal taxes using EFTPS. Individuals can pay their quarterly 1040ES estimated taxes electronically using EFTPS, and they can make payments weekly, monthly, or quarterly as well as schedule payments for the entire year in advance.