One of the big obligations businesses have is to withhold taxes and remit them to the government. Among the taxes organizations withhold are employee payroll taxes and corporate taxes. As you can imagine, the IRS (Internal Revenue Service) requires paperwork to track how much a business owes. One way they have done this in the past was by asking companies to submit federal tax deposit coupons—such as the former Form 8109.
What Is Form 8109?
Form 8109 was only used until December 31, 2010. It’s no longer accepted by the IRS. When it was in use, it was a federal tax deposit coupon—or a form—used by businesses to track and pay for corporate tax, payroll taxes, and other tax obligations.
Businesses would use Form 8109 to track the taxes they owed, to make sure they didn’t overpay, and to make sure they were withholding and paying the right amount of taxes. They would send this form to the IRS, including a check or other payment method to pay for the taxes owed.
What Do I Use Instead of Form 8109?
While Form 8109 is no longer used, organizations must still remit taxes to the IRS. Today, your business needs to file federal tax deposits electronically. You have five options.
- The Electronic Federal Tax Payment System (EFTPS). The IRS recommends the EFTPS for filing federal tax deposits. You can enroll in the system online and submit your information and payments through the secure website. This is a free service from the U.S. Department of the Treasury.
- The voice response system. If you don’t want to or are unable to use the online system, you can still use EFTPS via phone by calling 1-800-555-3453.
- Your financial institution. Your bank or financial institution may be able to make same-day wire payments or use ACH Credit—a type of digital check—to help you pay your federal tax deposits. Ask your financial institution whether this service is an option and what fees you may be charged.
- A third party. Payroll providers, accountants, tax professionals, and other business service providers may be able to track and pay your federal tax deposits for you for a fee.
- Form 941. Form 941 is the current IRS form used by businesses for quarterly tax returns. You can use it to report Medicare tax withholdings, income taxes, and Social Security taxes. This form is also used to pay a business’s part of Medicare and Social Security tax.
What Do I Need to Know To Meet My Federal Tax Deposit Obligations?
Whether you’ve previously used Form 8109 or not, you need to submit the following information to the IRS:
- Your organization’s name and contact information
- Your employer identification number (EIN)
- The account and bank routing numbers for your business’ bank account
- Your personal identification number (PIN), which you receive when you enroll in the EFTPS
- The money you are withholding for payroll taxes, corporate taxes, or other tax obligations
Saying Goodbye to Form 8109
While Form 8109 is no longer used by the IRS, you still need to make federal tax deposits. Today, it is easy and free to do so at any time by using EFTPS. Your bank or accountant may also be able to help you make federal tax deposits through their services.