Complete Form SS-4 to Resister a New Business. Upon receipt of the completed form the IRS will assign your business a Federal Employer Identification Number (FEIN).

Mail your completed form to:

INTERNAL REVENUE SERVICE
PHILADELPHIA, PA 19255

You should receive your Federal Identification Number before applying for your State Identification numbers.

W4 Form - Employee's Withholding Allowance Certificate

Have each employee complete a Form W-4 in order to withhold the correct amount of Federal Income Taxes from their paycheck. Keep this form in the employees file.

I-9 Employment Eligibility Verification

Have each employee complete section 1 of Form I-9 at the time of hire. You must complete section 2 and retain the completed I-9 for three (3) years after the date of hire or one (1) year after the date employment ends, whichever is late

FEDERAL INCOME TAXES (FIT)
Federal Income Taxes are withheld from the employee. These taxes are calculated on individual employee data including: Wages, Marital status, and Exemptions. As an employer you are required to withhold these taxes, based on the information the employee supplied on Form W-4, and deposit these taxes according to deposit requirements.

SOCIAL SECURITY & MEDICARE (FICA)

Fica taxes are paid by the employee with matching contributions made by the employer. Again the employer is responsible for withholding these taxes from the employee's wages and depositing them along with the employer contribution. Circular E, Employer's Tax Guide (Pub 15) provides instruction and Tables to help you compute these taxes. The formula varies from year to year.

FEDERAL UNEMPLOYMENT TAXES (FUTA)

Is paid by the employer ONLY. Futa provides unemployment benefits to workers who have lost their jobs. Most employers pay both a Federal and State unemployment tax. Futa taxes are deposited by the employer based on the employee's wages

FORM 8109

These coupons are used to make a Federal Tax deposit. The Internal Revenue Service should send these to you after they receive your Form SS-4. If you do not receive the coupons call 1 800 TAX-FORM.

DEPOSIT RULES

The Federal Tax Deposit rules are detailed in the Internal Revenue Service Circular E, Employer's Tax Guide (Pub 15)

FORM 941

On a quarterly basis, a reconciliation of Federal Income Tax (FIT), and Social Security (FICA) Is made using Form 941. This form must be submitted by the last day of the month following the calendar quarter during which the payments were due. IRS will send this form to you each quarter, instructions for completing the form are on the reverse side.

FORM 940
FORM 940-EZ EMPLOYER'S ANNUAL FEDERAL UNEMPLOYMENT TAX RETURN

Each year you must file FORM 940 or FORM 940 EZ to reconcile and report Futa tax payments that were made each quarter. These forms are mailed automatically to employers who filed during the pervious year. Instructions for completing the form are on the reverse side.

W2 Form Wage and Tax Statement

Each year , you must provide each employee who earned taxable income a W-2. The W-2 is used to report all Wages, Tips and Other Compensation you pay to an employee; Income tax and Social Security withheld; and any State or Local deductions that were made. There are also other requirements concerning the reporting of Fringe Benefits, Expense Reimbursements, and Pension Plan Contributions. CIRCULAR E provides more information regarding these requirement.

FORM W-3 TRANSMITTAL OF INCOME AND TAX STATEMENT

COPY A of the W-2 must be sent to the Social Security Administration accompanied by Form W-3 These reports must be filed by February 28. Amounts reported on W-2's must agree with the totals reported on the "Quarterly 941's and on the W-3. The Social Security Administration addresses are listed in the Form W-3 Instructions.

MAGNETIC MEDIA

COMPANIES FILING 250 OR MORE INFORMATION RETURNS MUST FILE BY MAGNETIC MEDIA.

Good records make the recurring Tax Deposits and Filing requirements a simple transfer of data.