How are withheld federal income taxes and FICA deposited?
There are two methods an employer can use to deposit federal income tax withholding along with the employee and employer portions of FICA taxes.
- Manually: An employer can choose to make deposits manually using Form 8109-B, Federal Tax Deposit Coupon. Deposits made using Form 8109-B must be made an authorized depository financial institution.
- Electronic: All employers have the option, although some employers are required, to make deposits electronically using the Electronic Federal Tax Payment System (EFTPS).