HR Glossary

Federal Tax Deposit

By Katie Milner October 31, 2019 No Comments

What is a Federal Tax Deposit? Definition below:

”A Federal Tax Deposit is the portion of an employee's wages that are withheld by the employer for federal tax purposes.

By withholding a federal tax deposit, employers can pay their federal tax obligation to the Internal Revenue Service (IRS). All employees (part-time, full-time, etc.) are required to have a percentage of their income withheld for taxes. Each employee has a minimum amount due for these federal taxes. The employer will automatically take out the required percentage from each employee’s wages in order to make their federal tax deposit.

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Katie Milner

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