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Chapter 36. Business Taxes > Employment Taxes

Employment Taxes

A variety of employment taxes must be filed and paid. For example, the federal and state taxes, Social Security tax, and Medicare fees that are withheld from employee paychecks must be paid periodically to the IRS and the state taxing authority. Federal and state guides for employers are available to explain how much to withhold from an employee's check and when payments are due. These withholding tax payments must be made promptly. In some cases the deadline is as fast as three days following the pay date. Form 941 must be filled out each quarter for federal tax reporting. Payments are made by using the tax coupon books at your local bank.

Another withholding tax is the unemployment tax, levied against businesses by your local state government throughout the year. If the company files with the state department of labor and the U.S. Department of Labor, it will receive reporting forms a few weeks before the filing deadlines. State taxes and report forms are sent to the state through the mail along with the payment. On the federal level, this tax requires filling out Form 940 once each year and using the coupon book to make the payment at the company's local bank.


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