What is a Federal Tax Deposit? When and what is it applied to?
I currently started up in private practice working as a licensed mental health therapist. In my office there are other therapist as well. We have two employees. One is a receptionist and the other does billing. One is paid 10.00 an hour and the other is paid 10.50 and hour. We divide the cost of their salaries between four therapist in the office including myself. I however have been required by the therapist who has her name on the building lease to pay her additional monies for what she describes as a federal tax deposit for the employee salaries that must be paid every pay period. Is this a legitmate thing? On top of paying the employees salaries which have taxes already taken out of them by the accountant, I am also having to pay additional money towards what I am told is a federal tax deposit. I am required to pay this every pay period. This other therapist who requires this, also has other busineses in town that have nothing to do with my private practice. Please advise. Thank you ver much.
1 Answer from Attorneys
Re: What is a Federal Tax Deposit? When and what is it applied to?
In addition to the taxes withheld, the employer has taxes it must pay on behalf of the employee. These include a sum equal to the social security taxes and medicare taxes withheld, Federal umemployment taxes and state unemployment taxes. I assume this is what you are being charged for. L. Maun 713.266.2560
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