What is Federal Tax Deposit?
Federal Tax Deposit is the payment made by employers or businesses to the U.S. Treasury for the federal taxes they are required to withhold from employees’ wages, including income tax, Social Security, and Medicare taxes. These deposits are made periodically according to the IRS’s deposit schedule, which depends on the amount of tax liability. Federal Tax Deposits are made electronically through the Electronic Federal Tax Payment System (EFTPS) or another IRS-approved method.