26 CFR 31.3401IRSactive
Employment Tax Withholding Requirements
Plain English Summary
Requires employers to withhold income tax and payroll taxes from employee wages and remit them to the IRS.
CFR Title
26
CFR Part
31
Effective Date
Jul 1, 1943
Jurisdiction
US
Full Text
Employers must withhold federal income tax from employees' wages based on the employee's Form W-4 information. Employers must also withhold and pay the employer share of Social Security and Medicare taxes. Deposits must be made according to either a monthly or semi-weekly schedule depending on the employer's tax liability.
Employers must file quarterly returns on Form 941 and furnish annual wage statements (Form W-2) to employees by January 31. Failure to withhold, deposit, or report employment taxes may result in penalties, interest, and personal liability for responsible individuals.
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