Federal Tax Deposit System  Employer withholds both federal income tax and FICA from checks  Must deposit these taxes either monthly or semiweekly (IRS notifies tax payer) ◦ Monthly depositors make deposit by 15th of following month (all new employers are automatically monthly) ◦ Semiweekly depositors make deposit either Wednesday and/or Friday (depending upon when payroll is run)  Very small employers with federal payroll tax liabilities of $1,000 or less can file/pay annually by using a Form 944  Large employers (who accumulate $100,000 or more of tax liability must comply with special one-day deposit rule) 2011 Cengage Learning
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