Which of the following is used to deposit withheld federal income and employment taxes?

Which of the following is used to deposit withheld federal income and employment taxes?

• A. Form 8809
• B. Form 941
• C. Form 940
• D. EFTPS

Answer: (D)

The correct choice is the Electronic Federal Tax Payment System (EFTPS). This system is used by employers to make federal tax deposits, including withheld income taxes and employment taxes such as Social Security and Medicare taxes. EFTPS allows for electronic payments, making it a secure and efficient method for submitting these required tax deposits directly to the Internal Revenue Service (IRS). Employers are instructed to use EFTPS to ensure timely and accurate payment of federal taxes, reducing the chances of errors that could occur with manual payment methods. Moreover, the system provides a confirmation for payments made, which is beneficial for record-keeping and compliance purposes. The other options, while related to tax reporting and payments, serve different functions. Form 941 is used for reporting income and employment taxes withheld, and Form 940 relates to annual federal unemployment tax reporting. Form 8809, on the other hand, is used to request an extension of time to file information returns, which is not directly related to the depositing of taxes. Therefore, EFTPS is the appropriate option for depositing the withheld federal income and employment taxes.

The correct choice is the Electronic Federal Tax Payment System (EFTPS). This system is used by employers to make federal tax deposits, including withheld income taxes and employment taxes such as Social Security and Medicare taxes. EFTPS allows for electronic payments, making it a secure and efficient method for submitting these required tax deposits directly to the Internal Revenue Service (IRS).

Employers are instructed to use EFTPS to ensure timely and accurate payment of federal taxes, reducing the chances of errors that could occur with manual payment methods. Moreover, the system provides a confirmation for payments made, which is beneficial for record-keeping and compliance purposes.

The other options, while related to tax reporting and payments, serve different functions. Form 941 is used for reporting income and employment taxes withheld, and Form 940 relates to annual federal unemployment tax reporting. Form 8809, on the other hand, is used to request an extension of time to file information returns, which is not directly related to the depositing of taxes. Therefore, EFTPS is the appropriate option for depositing the withheld federal income and employment taxes.