A quick guide to Form 8109

Withholding taxes is a huge responsibility for any business. Because of the many taxes individuals file, the IRS requires a special form to track all of them.

The document to help out with all this is Form 8109. However, it is now a defunct form only used until the end of 2010.

Continue reading this article to learn more about Form 8109, its alternatives, and what was required of it from taxpayers.

Form 8109 explained

Form 8109 was also known as a federal tax deposit coupon from the IRS. It was used to keep track of and pay corporate taxes, payroll taxes, Social Security taxes, and Medicare taxes.

The amount paid in taxes was simply indicated on Form 8109 and submitted together with physical federal tax documents.

Think of this form as a bridge that connects the taxpayer and the IRS and ensures payments are processed in an organized and timely manner.

What is the purpose of Form 8109?

The purpose of Form 8109 was to ensure that taxpayers pay their due taxes on time and in the correct amount. Doing so helps them prevent penalties and interest charges from piling up.

It was a systematic process that tracked and monitored businesses’ and individuals’ tax obligations while preventing late payments.

Quarterly or annual income taxes can be filed with Form 8109, representing all tax payments made during the year. This decreases the total amount of business tax. 

The form must be completed before January 1st of the tax filing year.

Filing of business taxes could also be used for other different forms, including:

• Form 941
• Form 940
• Form 944
• Form 1120

Who must file Form 8109?

Businesses who were required to file federal tax liabilities needed to file Form 8109. This applies to both small and large businesses to self-employed individuals who meet specific income thresholds.

Form 8109 was meant to be filed by both employees and their employers. The latter were responsible for withholding and depositing payroll taxes.

In order to make an electronic deposit, you must use the Electronic Federal Tax Payment System (EFTPS).

Form 8109 can be obtained from the IRS website or by obtaining the documents from a local tax office. However, as of January 1, 2011, Form 8109 is no longer in use.

Form 8109 required information

When filing Form 8109, there was specific information that you must submit to the IRS, namely the following:

• Business’ name and contact information
• Employee Identification Number
• Account and bank routing numbers of your business’ bank account
• Personal identification number once you enrolled in the Electronic Federal Tax Payment System (EFTPS)
• Amount of money you are withholding for payroll taxes, corporate taxes, and other tax obligations
  

On the top of the deposit coupon, write the tax year month in numerical, two-digit format for which the funds are deposited. Input the Employee Identification Number in the appropriate space.

On the right side, select the type of tax withholding and the tax period (1st Quarter – 4th Quarter) for which it is being assessed. Write the total amount of deposit in the designated boxes.

Alternatives to Form 8109 

Even if Form 8109 has no longer been in use since January 1st, 2011, individuals must still remit tax requirements to the IRS. 

You can do this electronically or through the following methods:

• Electronic Federal Tax Payment System – The EFTPS is the primary alternative the IRS recommends for filing tax deposits. You can enroll online for free and submit your payments accordingly. 
• Voice response system – If you cannot access the EFTPS, you can still reach them via phone by dialing 1-800-555-3453.
• Financial institutions – Your bank may use an ACH credit to make federal tax deposits for you and make same-day wire transfers on your behalf. It may or may not have a fee, so confirm with your financial institution if this is available and how much it charges.
• Third-party services – Third-parties such as payroll providers, accountants, or tax professionals can help you track federal tax deposits. However, they do this for a certain fee.
• Form 941 – Form 941 is used by businesses to file quarterly tax returns. You can use it for income tax, Social Security tax, and Medicare tax withholdings for both the employee and employer.

Ensuring compliance with Form 8109

Even though Form 8109 is no longer in use, our obligation as taxpayers does not go away. 

There are many different ways to file taxes, so it is important to remain compliant with these laws and regulations.

If you want to avoid incurring late payments, which result in penalties and high-interest charges, remember to do your part and file the necessary taxes on time.