20:49
i cant i would go crazy
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Simple English definitions for legal terms
federal tax deposits (FTD)
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A quick definition of federal tax deposits (FTD):
Federal Tax Deposits (FTD) are payments that employers must make to the Internal Revenue Service (IRS) for taxes that are withheld from their employees' paychecks. These taxes are required by law and are used to fund programs like Social Security and Medicare. Employers must make these payments either monthly or semi-weekly, depending on their size, using the Electronic Funds Tax Payment Service (EFTPS). This ensures that the money is paid to the IRS and not lost due to financial issues. If an employer is late on their payments, they may face fees of 15% or more on the withholding tax.
A more thorough explanation:
Definition: Federal Tax Deposits (FTDs) are required payments made by employers to the Internal Revenue Service (IRS) for employee tax withholdings specified in the Federal Insurance Contributions Act (FICA). These payments are made monthly or semi-weekly, depending on the size of the employer, through the Electronic Funds Tax Payment Service (EFTPS). The purpose of FTDs is to ensure that the withholdings made by employers are paid to the IRS and not lost due to a business bankruptcy or other financial issue. Failure to make timely payments can result in fees of 15% or more on the withholding tax.
Example: ABC Company has 50 employees and is required to make semi-weekly FTDs. Every Monday and Thursday, ABC Company must deposit the employee tax withholdings made during the previous three days into the EFTPS. This ensures that the IRS receives the withholdings in a timely manner and that ABC Company avoids any penalties for late payments.
Explanation: This example illustrates how FTDs work for a company with 50 employees. The company is required to make semi-weekly payments to the IRS through the EFTPS. By doing so, the company ensures that the employee tax withholdings are paid to the IRS and avoids any penalties for late payments.