Question
We're about to hire employees and need to know how much federal income tax to withhold and where to send this money along with other employment taxes?
Answer

You'll need to:

Generally, employers are required to file Forms 941 quarterly. However, some small employers (those whose annual liability for social security, Medicare, and withheld federal income taxes is $1,000 or less for the year) may file Form 944 annually instead of Forms 941. See the Instructions for Form 944 for more information. Employers are generally required to also file Form 940 annually. See Topic 759 for more information about Form 940. Employers must also file with the Social Security AdministrationForm W-2, Wage and Tax Statement annually for each employee along with a Form W-3, Transmittal of Wage and Tax Statements, and furnish a copy of the Form W-2 to each employee. See the General Instructions for Forms W-2 and W-3PDF.

Monthly or semiweekly deposits may be required for taxes reported on Form 941 (or Form 944), and quarterly deposits may be required for taxes reported on Form 940. Employers must deposit all employment taxes electronically by electronic funds transfer (EFT). Employers should consult each form’s instructions or Publication 15, Section 11, Depositing Taxes and Section 14, Federal Unemployment (FUTA) Tax to determine when and how to make deposits.

The Modernized e-File (MeF) for Employment Taxes and E-File Employment Tax Forms pages offer ways to file Forms 940, 941, and 944 electronically. See also Become an Authorized e-file Provider. Prospective participants must first complete and submit an IRS e-file application. You can complete the IRS e-file application online after registering for e-services.