Some employers must deposit payments for withheld employees' federal income tax and social security and Medicare taxes on the next banking day.

Question

Quizplus · Accepted Answer

This is true because the IRS requires certain employers, especially those with large payrolls, to make next-day deposits for federal income tax and FICA taxes (Social Security and Medicare) that they have withheld from employees' wages. This is to ensure timely funding of the federal government's operations and the Social Security and Medicare trust funds.

Some Employers Must Deposit Payments for Withheld Employees' Federal Income