How do I remit to the IRS the withholding tax on a contractor?

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For deposits of backup withholding taxes you should complete Form 945, which documents for the IRS the amount of backup withholding for your contractors. The IRS states that generally if your withholding is less than $2,500 for the year, you may deposit with your annual filing of Form 945. If the amount of withholding is greater than $2,500 per quarter, then you may be subject to paying the tax via your financial institution using Forms 941V and Form 8109. See section 11 of Circular E (publication 15) for details of whether you meet the deposit requirements via a financial institution. However, check with your tax advisor for your particular situation since amounts and type of withholding tax may have an impact on how you should deposit the funds. The filing dates when filing with Form 941 (schedule included in Instructions Form 941):

  • Jan-Feb-Mar: April 30th
  • Apr-May-Jun: July 31st
  • Jul-Aug-Sep: Oct 31st
  • Oct-Nov-Dec: Jan 31st

 

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