Employment Tax Withholding Requirements

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.